VINCI and Conconcreto future concession holder for the 3rd Lane Bogotá – Girardot project in Colombia 9 September 2016
- New toll road concession between Bogotá and Girardot, Colombia's busiest road: 141 km of highway including the construction of a 65 km 3rd lane
- Total amount of the contract estimated at €1.3 billion (COP 4.2 billion)
On August 12th 2016, Colombia's National Infrastructure Agency (ANI) awarded the project 3rd Lane Bogota-Girardot: a public-private partnership (PPP) contract with a term of 30 years for the addition of 65km of 3rd lane and the operation of 141 km of the highway between Bogotá and Girardot, in Cundinamarca and Tolima Departments in Colombia.
Following the announcement, talks occurred between the awardee consortium, VINCI's subsidiary VINCI Highways. After obtaining the approval of the ANI the final consortium will be formed by VINCI Highways (50%), Constructora Conconcreto (25%) and Industrial Conconcreto (25%).
The total amount of the contract is estimated at €1.3 billion (COP 4.2 billion). The Bogotá-Girardot 3rd lane Toll Road is one of Colombia' busiest, with 15.3 million vehicles in 2015. The road itself exists for more than 50 years and is operated as a concession since 2005. More than 37% of its revenues come from heavy traffic (it connects Bogotá with the main artery for Pacific ports).
The project involves the design, financing, construction, operation and maintenance of the 141 km of highway, including the addition of 65km of third lanes and the construction of 2km of 4 bidirectional tunnels. The project as of today includes 2 major intersections, a 4.2 km tunnel, 17 bridges, 34 pedestrian bridges, 4 viaducts and 2 operational centers. The project is a self-sustained PPP based on toll revenues (it has already 2 toll stations installed since 2005).
The construction works are estimated to last 5 years and will be carried out by a joint-venture consisting of VINCI Construction Grands Projets / VINCI Construction Terrassement (50%) and Conconcreto (50%). The whole infrastructure will be operated and maintained by the concessionaire.
In July 2010, VINCI has announced a strategic partnership with Constructora Conconcreto, a leading Colombian construction and real estate development company. The partnership involves VINCI's acquisition of a 20% stake in Constructora Conconcreto via a reserved capital increase.
VINCI's ambition is to put down long-term roots in Colombia, one of the most dynamic countries in South America. For about a decade, the country has regularly recorded annual GDP growth in excess of 4%. The construction sector is particularly promising, with volume expected to increase by 5% annually in coming years.
This new operation follows the recent acquisition of the LAMSAC highway concession company in Peru and is a further demonstration of VINCI's dynamic expansion in Latin America.
VINCI is a global player in concessions and construction, employing more than 185, 000 people in some 100 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, above and beyond economic and financial results, we are committed to operating in an environmentally and socially responsible manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities.