Project Scope and Objective
The Rumichaca-Pasto corridor (the “Project) is part of the fourth generation (4G) concession group led by the Government of Colombia through its National Infrastructure Agency (ANI, for its Spanish acronym).
The Project, operated by Concesionaria Vial Unión del Sur (the “Concessionaire”), covers 83 km of roads located in the Department of Nariño (south of Colombia) connecting the border crossing point, located in the international border between Colombia and Ecuador, with the City of Pasto. The Project entails: i) the rehabilitation of 15.7 km between Rumichaca and the San Juan Corregimiento in Ipiales; ii) the construction of 62.1 km of a double roadway between the San Juan and Catambuco Corregimientos, in the City of Pasto (25 km of brand-new double roadway between San Juan and Pilcuán Viejo); and iii) the improvement of 5.2 km of road in the Catambuco-Pasto stretch.
For follow-up purposes, the Project was divided into five functional units (FU) as follows: i) FU1, connecting Rumichaca with Contadero (24.66 km); ii) FU2, between Contadero and Iles (12.27 km); iii) FU3 between Iles and Pedregal (7.20 km); iv) FU4 between Pedregal and Tangua (15.75 km); and v) FU5 between Tangua and Pasto (22.18 km). In April 2021, the progress of the civil works was close to 90%. It is estimated that the works will conclude in 2021.
The Project was originally funded through a medium-term financing structure (usually known as “MiniPerm”). Therefore, it needs to be refinanced. IDB Invest expects to be involved in such refinancing helping mobilize institutional investor resources