InfraRed Infrastructure Fund III (the “Fund”) has signed an agreement to purchase a 50% interest in the Perimetral de Oriente de Cundinamarca project (“Cundinamarca”), a $610m road project in Colombia, in partnership with Shikun & Binui with whom we are partners on two other projects. This is the Fund’s 13th investment and brings total equity commitments to c. $970m (95% of the Fund).
The project is part of the 4G Public Private Partnership highway programme and comprises the financing, rehabilitation, construction and improvement of an existing toll road east of Bogotá. The road covered by the project is around 148km of existing brownfield corridor and 5km of new greenfield bypass.
Construction of the project commenced in December 2015 with completion scheduled for March 2019. The project is being financed with non-recourse project finance debt through a combination of US dollars and Colombian pesos with leading international and local financial institutions. Completion of the acquisition remains subject to obtaining certain consents from various stakeholders in the project.