Colombia Builds Road to the Sun
With the IFC's help, Colombia is drawing up its own blueprint for infrastructure finance. Local investors are rubbing their hands as the government seeks a replicable model.
"Ruta del Sol" is becoming a utopian catch phrase in
Colombia's business community, which is eagerly anticipating
$35 billion in infrastructure spending over the next three
years. The unbuilt highway, which will connect Bogotá,
located at the geographical center of the country, to three key
Caribbean ports Barranquilla, Cartagena and Santa Marta
is part of a grand experiment being cooked up by the
federal government and IFC that could result in a new template
for LatAm infrastructure finance.
The goal is to create a new model for auctions of
large-scale concessions one that departs from the
current standard where projects are solely financed with
capital from engineering companies. The new model would include
participation from both international and local investors, all
the while circumventing political interference. This is a tall
order, but the IFC feels up to the task.
"We want to create a new blueprint...
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