ICO to participate in financing the Transversal del Sisga motorway in Colombia
The project has received financing of 575.2 billion Colombian pesos (around 166.7 million euros) of which ICO has contributed 90 billion pesos (around 26.1 million euros)
ICO has participated in this project through the financing, in Colombian pesos, of the Colombian development bank FDN's Financing Facility
The Chairman of Instituto de Crédito Oficial (ICO), Pablo Zalba, and the chairman of the Colombian development bank Financiera de Desarrollo Nacional (FDN), Clemente del Valle, have formalised a financing agreement which will allow the reconstruction of 137 kilometres of the Transversal del Sisga corridor in Colombia.
The project will represent a significant step forward in infrastructure in Colombia as it will connect 12 towns inhabited by 100,000 people and will promote competitiveness and progress between the interior of the country and the eastern Llanos basin.
The project has received total long-term financing of 575.2 billion Colombian pesos (approximately 166.7 million euros) through the project finance method. Of this amount, FDN has provided senior credit of 172 billion pesos and a liquidity facility of 50 billion pesos. For its part, ICO has contributed 90 billion pesos (some 26.1 million euros) and the remainder has been provided by the Senior Debt Fund for Infrastructure in Colombia CAF ¿ Ashmore and Blackrock.
In order to participate in financing this project, partially carried out by a Spanish company, in the local currency, ICO has signed a loan agreement with FDN.
The Transversal del Sisga motorway is the first financing operation to be carried out in Colombia by a foreign entity in pesos, and is a consequence of the regulatory change implemented by Banco de la República (the state-run central bank of the Republic of Colombia) in 2017, the Financing Facility promoted by FDN and ICO's support for infrastructure projects in Colombia with a Spanish interest.
Awarded in May 2015, Concesionaria Transversal del Sisga S.A.S., in which the Spanish construction company Ortiz Construcciones y Proyectos has a 50% stake, and which has more than 55 years' experience in concessions in the energy sector, construction and maintenance, and the real estate sector, is the concession operator of the project.
During the project the section between El Sisga (Department of Cundinamarca) and El Secreto (Department of Casanare) will be reconstructed, allowing the six hours currently needed to complete this journey to be reduced to four. Renovation of the road will improve communications and the economic progress of the region, generating 1,300 new jobs.
FDN's chairman, Clemente de Valle, noted that: "This project will bring competitiveness, development and employment to Colombia. It is the first project to benefit from the financing line in pesos launched by FDN last year which allows foreign financial institutions such as ICO to lend in pesos".
In turn, the chairman of ICO, Pablo Zalba, stressed that, "this operation is part of the plan to promote the financing of the internationalisation of Spanish companies carried out by ICO as one of its priority objectives".
In 2012, the Colombian Government approved the Fourth Generation Infrastructure Programme (4G), which foresees investments of more than 19 billion USD in three batches, covering 7,000 km (compared with a total road network of 17,000 km). The first batch of the 4G saw 10 projects awarded in 2014. The second batch saw nine projects awarded in 2015 for stretches totalling 1,827 km, with Transversal del Sisga being one of them.