Troncal del Magdalena I

in implementation

TheTroncal del Magdalena I(the “Project) is the third project of the fifth generation (5G) concession program led by the Government of Colombia through its National Infrastructure Agency (ANI). The Project is being executed by Autopista Magdalena Medio S.A.S. (the “Concessionaire” or the “Client”), formed by KMA Construcciones S.A. (50%) and Ortiz Construcciones y Proyectos S.A. (50%).The Project considers the financing, construction, improvement, rehabilitation, and maintenance of the Puerto Salgar–Barrancabermeja corridor (the “Corridor”), which is 260 km long and joins the towns of Puerto Salgar, located in the Department of Cundinamarca, with Curumaní, Barrancabermeja, located in the Department of Santander, extending through the Department of Boyacá.The Project is currently in pre-construction phase and is estimated to start construction by the end of 2023, during forty-seven (47) months. Afterwards, it will enter in operations phase for a term of 25 years, measured from concession start date (December 01, 2022)The costs of the Project are estimated at approximately US$630 million and will be financed through a bi-currency miniperm (COP/US$) of up to 8 years, which will be refinanced once the Project is close to entering operation phase. Under the proposed financing, IDB Invest will lend up to COP 250,000 million within the less liquid local currency tranche, helping to mobilize resources from local banks.