Cali - Candelaria - Florida Toll Road

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In 1995 the Department of Valle del Cauca held negotiated bidding procedures and awarded a 22-year concession to construct, maintain, and operate the road to CISA, whose proposal called for the lowest toll structure (the peso equivalent of approximately $1.70 per passenger car trip) of the three groups competing. The departmental government also agreed to guarantee 90% of projected toll revenues, and its finances are considered more than adequate to cover these payments if necessary. The departmental governmental also allowed the concessionaires to adjust the tolls for inflation once a year, or more if the accumulated inflation rate exceeds 10% since the time of the last adjustment. The winning consortium was Concesiones de Infraestructuras S.A. (CISA), a consortium made up of Grupo Ferrovial (Spain),Construcciones Civiles (Colombia), and Cruz Blanca (Chile). The project included rehabilitation of an existing road (14.7 km), construction of a parallel roadway (17.4 km), two bridges and traffic circles. The project has been debt financed (including a US$ 10 million loan from the IADB in 1997). The expected daily traffic volume was 8,600 vehicles. Ferrovial Group owns 94% of the project company shares. Financing Package: Approximately 60/40 debt equity ratio. Equity: $14.5 million from sponsors and $5 million from projected internal cash generation from toll road revenues; Debt: $10 million, 10-year IDB loan at LIBOR plus at least 325 bp and another loan for the peso-equivalent of $19.5 million from local banks. http://www.iadb.org/sds/doc/1243eng.pdf None