Banks, builders and Colombian government discuss motorway funding plans

Banks, builders, pension funds and Colombian government officers are discussing plans to finance around 40 new road concessions worth a combined US$23.86 billion (COP 47 trillion). According to market reports, the winners of these concessions will cover around 25% of their final cost. These funds will be paid in the first two years of each project and the winning firms will look to recoup their investment through road tolls. Banks will cover 30% of the cost via 12-18 year loans. The national development bank FDN will cover 10% via 20-year loans. The International Finance Corporation and the Latin 4900 American Development Bank will cover 5% of the final cost. A total of 19 projects will go under the hammer in 2014.