International investment firm InfraRed has agreed to purchase a 50% stake in the Ruta Al Mar concession, a 34-year concession for the design, construction, finance, operations and maintenance of a toll road project in Colombia. The remaining 50% of equity is held by El Condor.
(Press Release) InfraRed has signed a purchase and sale agreement to secure a 50% interest in the Ruta Al Mar concession, a 34-year concession for the design, construction, finance, operations and maintenance of a toll road project in Colombia. The remaining 50% of equity is held by El Condor, the project’s EPC contractor. The senior debt financing was raised from local Colombian lenders and a bond offering underwritten by Goldman Sachs. The deal remains subject to a number of conditions, including the approval of ANI, the national infrastructure agency.
The Project is a 491 km toll road being developed as a Private Initiative 4G Project, within the Colombian Government’s 4G Program. The purpose of the Project is to develop a fast and efficient primary route linking two major economic centers of Colombia ‒ the manufacturing and consumer centers in the central and southern regions to the country’s northern coast that serves as a hub for several strategic ports connecting the Colombian departments of Antioquia, Cordoba, Sucre and Bolívar in the northwestern region of the country.
The new construction (c. a quarter of the project) is low-complexity in nature connecting with existing roads or congestion-relieving bypasses around cities. Construction completion is anticipated around the end of 2020. The Project currently generates revenues from seven toll stations. An eighth toll station will become operational and begin to generate revenue in 2018.El Condor is a public company listed on the Colombian Stock Exchange and ranks third among Colombian infrastructure companies by total assets and has experience in the construction of roads, viaducts, bridges, dams, tunnels, oil pipelines and mining.
This project is the second investment by InfraRed in Colombian road projects.