Sacyr secures $110m funding for two Colombian highways
August 21, 2018 – Spanish construction company Sacyr has signed contracts for a total amount of nearly $110m (€100m) for its Rumichaca-Pasto and Montes de María fourth-generation (4G) highways in Colombia, South America.
The concession company has signed a bridge loan for $50m (around €45m) for the Montes de María highway, which runs between the towns of Puerta de Hierro – Palmar de Varela and Carreto – Cruz del Viso.
The transaction was made through financial commitments with Inter-American Corporation for the Financing of Infrastructure (CIFI); Banco Pichincha Panama and Banco BTG Pactual, Cayman Branch, which played the role of MLA in the bridge loan, indicating the confidence of international lenders in the project that will benefit the departments of Sucre, Bolívar and Atlántico.
The construction stage of the highway began on 9 February and the works will be executed over approximately three years.
Works will include the improvement of 164.59km of the existing road and the construction of a 5.2km alternative in the municipality of El Carmen de Bolívar.
Furthermore, concessions company Vial Union del Sur has achieved partial financing of $60m ($53m), which guarantees resources for the works of the section between Pedregal and Catambuco during the next months.
The loan has been supported by financial commitments from Banco Santander and JP Morgan for the first phase, attesting to the credibility of the project.
The company will carry out the final financial closure after building a consensus among the community of Nariño, which will guarantee the feasibility of the project.
The dual carriageway will link the borders between Colombia and Ecuador and spur development in the southwest of the country.
The works, which have already begun, will be completed in three years and include the construction of 78km of dual carriageway, with six viaducts. Also, 5km of existing road will be improved, to complete a total of 83km.