TM1

active

IFC is considering an 8-year loan for up to COP$ 735,500mn (approximately US$150mn) for the 260 km-long “Puerto Salgar – Rio Sogamoso” concession between Puerto Salgar and Barrancabermeja in the regions of Cundinamarca, Boyaca and Santander in the northeast of Colombia. The concession is also known as “Troncal del Magdalena 1” or “TM1” (the “Project”), a brownfield toll road awarded in 2022 by Colombia’s National Infrastructure Agency (“ANI”) through a competitive bidding process. The total estimated cost of the project is US$510mn. KMA Construcciones S.A.S, and Ortiz Construcciones y Proyectos S.A., which collectively form the “Autopista Magdalena Medio S.A.S.” or “AMM” group, (the “Company”) with 50% each won the TM1 concession and will be the EPC Contractor as well.TM1 was originally part of the “Ruta del Sol 2” concession awarded in 2010 to another consortium, which was stopped in February 2017 after completing some sections of the double lane highway and left others at different levels of progress. The new concession awarded to AMM, is approx. 45% brownfield and includes three phases:  1) pre-construction activities (i.e. road repairs to the existing road and preparation of the construction phase), 2) construction of a 123 km-long second lane and of eight bypass roads (a ninth bypass has been already built by the former concessionaire) to avoid passing through urban areas over a 47-month period, and 3) operations and maintenance (“O&M”) for 24 years. The project is divided into 13 Functional Units (“UF”). Each UF is a section of the road that can be operated independently. The pre-construction phase will be completed in December 2023. Construction phase will immediately follow.