Conexion Norte Toll Road

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In October 2014, Consorcio Autopistas del Nordeste, a partnership of KMA Construcciones S.A. (Colombia, 25%); Ortiz Construcciones Y Proyectos S.A. (Spain, 25%); Equipo Universal S.A. (Colombia, 25%) and Valores Y Contratos S.A. (Colombia,25%), won in a competitive bidding the right to expand, rehabilitate and operate the 146 km of the Conexion Norte highway connecting the cities of Remedios-Zaragoza-Caucasia. The bidding criteria was the lowest funding to be provided by the government. Two groups of companies presented offers: Consorcio Autopistas del Nordeste and China Gezhouba Group Company Limited. Consorcio Autopistas del Nordeste request was 11.4% below the ceiling established by the government, a value of US$ 435.3 million, or 88.8% of the project costs. The investment was estimated at US$ 490.5 million. The 25-year concession contract was signed in December 2014. The sponsors created the company Consorcio Autopistas del Nordeste SPV to lead the project. In January 2016, the project was granted a US$ 428 million financing deal. SMBC provided a US$ 250 million dollar tranche, and Bancolombia, Davivienda, Financiera de Desarrollo Nacional (FDN) provided a Pesos 520 billion senior credit facility. FDN also provided a Pesos 80 billion multipurpose subordinate credit facility (MSF).