THE NEW ROAD NETWORK OF VALLE DEL CAUCA: CALI AND PALMIRA ACCESSES, STRUCTURED BY ICEACSA CONSULTORES, MARKS A MILESTONE IN COLOMBIAN STRUCTURING BY RECEIVING 8 BIDS FOR THE CONCESSION CONTRACT.
THE NEW ROAD NETWORK OF VALLE DEL CAUCA: CALI AND PALMIRA ACCESSES IS THE FIRST PROJECT OF THE FIFTH GENERATION OF TRANSPORTATION CONCESSIONS IN COLOMBIA.
The new program of the Fifth Generation of concessions in Colombia starts with the project The New Road Network of Valle Del Cauca: Cali and Palmira Accesses. ICEACSA has been developing the structuring of this PPP from the feasibility studies to accompanying the National Infrastructure Agency in the contracting process, which marked an important milestone on February 26th with the receipt of 8 bids to contract the concession. This is the first time in Colombia that a public project in the framework of Public Private Partnerships in Colombia exceeds 6 bids, demonstrating that the infrastructure market with private financing is consolidating in Colombia.
The integral structuring was developed since 2018 in a consortium formed by ICEACSA and BONUS Banca de Inversión, with the support of Baker McKenzie Colombia. The concession was proposed with 100% revenue source from 8 existing toll stations in a current network of 291 km that will be expanded to 310 km. The toll collection has a guarantee of partial coverage of traffic risk and the contract incorporates tools for social, property, archaeological, prior consultation, avoidance and climate change preparedness risks. The effects of the COVID-19 pandemic are reflected in a hedging instrument that compensates for mobility restrictions that may affect traffic and toll collection. Unlike the projects of the Fourth Generation of concessions, prior consultations with communities were carried out by ICEACSA during the structuring stage, allowing the agreements with the communities to be incorporated into the PPP contract.
This project has CAPEX investments of 1,22 billion COP (325 MM USD) and marks the beginning of the Bicentennial Concessions program that will share a uniform contractual framework. ICEACSA continues to participate as technical advisor in concessions including the structuring of other Bicentennial Concessions projects, and other new concession operations, advising the financier and M&A of existing concessions in Latin America.