TM2

active

IFC is considering an 8-year loan for up to COP$ 661.500mn (approximately US$135mn) for the 272.1 km-long “Sábana de Torres – Curumaní” concession between Barrancabermeja and San Roque in the regions of Santander and Cesar in the northeast of Colombia. The concession is also known as “Troncales del Magdalena 2” or “TM2” (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$564mn. KMA Construcciones S.A.S, and Ortiz Construcciones y Proyectos S.A., which collectively form the “Autopista del Rio Grande S.A.S.” or “ARG” group, with 50% each (the “Company”) won the TM2 concession and will be the EPC Contractor as well.TM2 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 ARG, is approx. 65% brownfield and includes three phases:  a) pre-construction activities (i.e. road repairs to the existing road and preparation of the construction phase), b) construction of a 98.9 km-long second lane and of ten bypass roads as alternative to the town passages (pasos poblados) over a 47-month period, and c) operations and maintenance (“O&M”) for 24 years. The project is divided into 11 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.