Troncal del Magdalena II

in implementation

The Troncal del Magdalena IIproject (the “Project) is the fourth 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 del Rio Grande 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 Sabana de Torres–Curumaní road (the “Corridor”), which is 272 km long and joins the towns of Sabana de Torres, located in the Department of Santander, with Curumaní, located in the Department of Cesar, running through a small portion of the Department of Norte de Santander.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$550 million and will be financed through a bi-currency miniperm (COP/US$) 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.