Medellin - Valle de Rio Negro Toll Road

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In May 1996, the concessionaire DEVIMED SA was granted a 211 month concession to rehabilitate 195 km and build new 42-km of road. In 1998, the IBRD approved a US$ 137.1 million to finance the construction works. In 1999, Devimed was involved in the rehabilitation but the construction of the new 42-km road had not yet started (only 26% of the contracted investment had been implemented). Corfiestado S.A. controls 37.53% of Divimed's shares and the other main shareholders own 15% of the shares each (the remaining shares are held by other four companies). The road concession included the following segments: Tramo 1: Medellín - T Aeropuerto (25,5 Km) Tramo 2: T Aeropuerto - El Santuario(25,5 Km) Tramo 3: T Aeropuerto - El retiro - Rionegro - El carmen (55,6 Km) Tramo 4: Glorieta Palmas - La Unión (52,2 Km) Tramo 5: El Santuario - La Piñuela (32 Km) Tramo 6: La Piñuela - Caño Alegre (103 Km) In November 2005, the Instituto Nacional de Concesiones (INCO - Colombia's National Concessions Institute) anounced that it would renegotiate eight highway contracts. These contracts were costing the Government US$131 million (300,000 million pesos) each year in minimum revenue guarantees. Included in those is the contract for the Medellin - Valle de Rio Negro Toll Road concession. Conversations for the renegotiation of this contract had started at the time of the anouncement. The concession contract was extended until 2026. http://www.inco.gov.co/concesiones/filtros/ficharesumen/frm_ficha_resumen.asp?concesion=281