KPMG Colombia Infrastructure Opportunities

Transcription

KPMG ADVISORY SERVICES LTDA
Infrastructure Opportunities
in Colombia
GLOBAL INFRASTRUCTURE
October 2013
kpmg.com.co
© 2013 KPMG Advisory Services Ltda, a Colombian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity.
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Contents
1. KPMG Services
2. Colombia as an investment destination
3. PPPs in Colombia
4. Infrastructure projects summary
a. Roads
b. Airports
c. Railways
d. Public transportation
e. Ports
f. Fluvial
g. Social
h. Energy
i. Water and sewerage
j. Pipelines
k. Mining
5. Financing market in Colombia
6. KPMG Global infrastructure, awards and recognition
7. Colombian experience, CVs and contact
© 2011 KPMG Auditores Consultores Ltda., sociedad de responsabilidad limitada chilena y una firma miembro de la red de
firmas miembro independientes de KPMG afiliadas a KPMG International Cooperative (“KPMG International”), una entidad suiza.
Todos los derechos reservados.
1. KPMG Services
KPMG services
We advise clients on all facets of the infrastructure lifecycle. From strategy and development, through to procurement, financing,
development, operations and investment
Integrated
advice
across the
asset
lifecycle
Strategy &
development
Procurement &
financing
Delivery &
construction
Investment
Operations &
performance
Planning, feasibility
and business case
development
Bid structuring and
creating value for
money
Achieving efficiency
in construction
Maximising value in
the secondary
market
Achieving positive
performance
■
■
Advice on tender
process.
■
Commercial
structuring.
■
Request for
tender and
tender response
documents.
■
Clarity of needs,
objectives and
constraints.
Strategy, policy
and regulatory
formulation and
planning.
■
Infrastructure
plans.
■
Feasibility
assessment.
■
Risk analysis.
■
Funding options
analysis.
■
Business
Case/Investment
Case
development.
■
Procurement
strategy advice
and options
analysis.
■
Funding
strategies and
procurement of
financing.
■
Development of
contractual
documentation.
■
Financial
modelling.
■
Negotiation of
commercial
terms.
■
Contractual and
financial close.
■
Development of
tax efficient
structures.
■
Stakeholder
engagement.
■
Retendering.
■
Privatisation.
■
Monitoring and
control of risks,
costs and
benefits.
■
Governance and
contract
management.
■
■
Investment/dive
stment of
infrastructure
assets.
■
Tax planning and
structuring.
Operational
readiness
assessment and
assistance.
■
Financial, tax,
pensions and
operational due
diligence.
■
Project
oversight.
■
Valuations.
■
Project
management.
■
M&A Advisory.
■
Pensions.
■
Tax capital
allowances
maximisation.
■
Investment
strategy.
■
Refinancing.
■
Restructuring.
■
Audit of funds
and project
companies.
■
Asset
management.
■
Cost takeout.
■
Contract
monitoring.
■
Tax compliance.
■
Change of
ownership
due diligence.
Our teams can provide you with specialist advisory (M&A, due diligence, valuations), tax, audit, accounting and compliance related
assistance through the life of your infrastructure projects and programs, or as a fundamental part of your business. Our professionals
can bring to you the benefit of their extensive local and global experience advising government organizations, infrastructure
contractors, operators and investors.
KPMG firms can help set a solid foundation at the outset and combine the various aspects of your infrastructure projects or programs –
from strategy, to execution, to end-of-life or hand-back. Our teams can help you ask the right questions and find strategies tailored to
meet the specific objectives you have set for your business.
KPMG services (2)
We have deep sector specialisation and experience across infrastructure. We truly understand the issues that are relevant and have
experience in proactively driving positive solutions
Sectors
Transport
Social
infrastructure
Energy and natural
resources
Communications
■
Urban transit.
■
Healthcare.
■
■
■
Traffic management.
■
Education.
Power generation and
transmission.
Telecommunications
infrastructure.
■
Rail.
■
Leisure.
■
Water and waste
management
■
National broadband.
■
Roads.
■
Housing.
■
Solid waste.
■
Airports.
■
Urban regeneration.
■
Mining.
■
Ports.
■
Government
accommodation.
■
Oil and gas storage
and transportation.
■
Prisons.
■
Major Games.
Cities
KPMG services (3)
We also consider the particularities of the different cash flows of the project, taking into
account the different currencies and the facilities for handling in the domestic and foreign
markets.
KPMG has the support of professional personnel in tax and accounting related issues, to
adjust the structure to the local legislation and to the available possibilities in the market.
Our objective is to support the client in the investment to be made, accompany the investor
throughout the different required stages, and efficiently structure the financing that would lead
to a financial close within an optimal time-frame.
Our role as independent advisors
Infrastructure projects require a strong dedication for the design of the Business Plan and its
subsequent execution, which implies support throughout the public bidding process, design
and negotiation for eventual structure of the financial close, and the necessary management
and coordination of the different tasks to be conducted by the other advisors of the project.
Likewise, the characteristics of the advisory require an exhaustive level of dedication from the
team assigned to the project and the presentation of a great quantity of economic-financial
documentation to the lender entities which also requires a high level of expertise.
The KPMG Infrastructure team has a large experience in the financial advisory of infrastructure
projects in various sub sectors. Main characteristics of our advisory are as shown in the table
on the next slide
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2. Colombia as an
investment
destination
Colombia as an investment
destination
Why invest in Colombia?
10 reasons to invest in Colombia
1. Investment grade - Colombia gained investment grade given by the three main risk rating agencies (Standard and Poor's, Moody's
and Fitch).
2. Leading economy in 2050 - HSBC has ranked Colombia at number 26 of the 30 largest economies in the world. It has also
forecasted that Colombia will grow at a faster pace than other countries to 2050.
3. Prospects for investment - according to the report made by the newspaper The Independent in the United Kingdom, Colombia is
ranked as one of the two new countries in Latin America with the best prospects for investment and development.
4. Excellent macroeconomic performance - in 2009 while world GDP fell 2.1%, the Colombian economy grew 1.5% and in 2010
increased 4.3%, higher than the world economy, which was 3.4% in the same year. Colombia will expect GDP growth of 4.4% in
2013.
5. Attractive market - In terms of Purchasing power parity (PPP), Colombia is the 28th largest economy in the world and 3rd in Latin
America. The country's GDP has doubled from 2005-2012 and although it is not a part of the OECD countries it may be expected to
become one of them on the long run. (CIA World Factbook)
6. Dynamic external sector and growth - since 2001, Colombia has presented a 522% growth in Foreign Direct Investment (FDI)
from USD 2,542 million to USD 15,823 million in 2012.
7. Safety conditions - according to the International Institute for Management Development (IMD), Colombia ranks second in Latin
America in terms of personal safety and adequate protection of private property, after Chile.
8. A country that protects environment - according to Yale University, Colombia is the tenth country in the world and the first in the
region to protect the environment.
9. Competitive advantages - third most "friendly" to do business and more reformer in Latin America, as well as the fifth and first in
the world and region respectively that protect investors, according to the World Bank Doing Business 2011.
10. Government commitment in offering investment incentives and stability for investors:
- 18 International Investment Agreements with 50 countries and 16 agreements to prevent double taxation.
- Among the most competitive Free Trade Zones of Latin America: income tax of 15%, allows local market sales, no payment of
customs taxes (VAT, tariffs) and allows the benefits of international trade agreements (except Peru).
- Colombia offers legal stability contracts to ensure investment projects.
- 125% deduction for investments in scientific and technological development in the income tax.
- Income tax deduction of 200% of payments made to employees with disabilities work.
Source: Proexport
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destination (2)
General aspects
•
Over the past few years, Colombia has experienced significant improvement in its
macroeconomic performance, internal security and stability. As a result, social indicators
have improved dramatically;
•
Colombia has achieved solid structural growth given an increase in the investment rate
which in turn, generates higher productivity levels;
•
In 2011, Colombia was awarded investment grade rating from all the main rating agencies
in the world;
•
Colombia is aggressively negotiating free trade and investment agreements in order to
expand its markets;
•
The Government is fully committed to reassuring favorable conditions so as to improve
domestic and foreign investment. This is reflected in the establishment of free trade zones
and legal stability contacts.
GDP
•
In the last decade, Colombia has shown a balanced trend in GDP growth;
•
In 2008, the year of the international economic crunch, Colombia had relatively strong
economic growth in spite of the external conditions. The latter was evident as according to
the figures released by the International Monetary Fund (IMF) for the year 2009 showing
economic growth for the year of 1.5%;
•
As of May 2013, the IMF forecasts a GDP growth of approximately 4.4% for Colombia.
The agency suggests that the European debt crisis is unlikely to affect the GDP and that
inflation is likely to be kept under control.
GDP Growth
8,0%
6,7% 6,9%
7,0%
5,3%
6,0%
5,0%
4,7%
3,9%
4,0%
4,3% 5.9% 4.0% 4,4%
3,5%
3,0%
2,0%
1,5%
1,0%
0,0%
Source: IMF – International Monetary Fund
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destination (3)
Trade operations
•
Exports have increased approximately 253.0% since 2004, rising from about USD 17
billion to USD 60 billion in 2012, generating a trade surplus in recent years;
•
In 2009, trade in Colombia was limited by political conflicts with some of its commercial
partners, resulting in almost no trade with Venezuela. In spite of these problems, the
behavior of the balance of trade was positive and has remained at a good economic level;
•
As of the end of year 2012, the balance of trade was positive by USD million which may
represent competitive Colombian products to foreign markets.
Balance of Trade
6.000
5.358
5.001
5.000
USD Million
4.000
3.000
2.000
1.140
1.665
1.392
1.559
470
1.000
-143
-1.000
-213
-824
-2.000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013*
Source: DANE – Statistics National Department
*as of January 2013
Exchange rate behavior
•
Succeeding a strong devaluation in the 90s, the Colombian Peso appreciated against the
USD, mainly due to the country’s economic recovery;
•
This phenomenon is expected to continue in the upcoming years due to the weakening
market value of the US dollar along with the enduring European economic crisis;
•
The average exchange rate (representative market rate) for the year 2012 was of 1,198.
The exchange rate for April 1st, 2013 was 1,832.
End of year official exchange rate
$3.000
$2.500
COP/USD
$2.000
$1.500
$1.000
$500
$2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
Source: Colombian Central Bank
*As of April 1st, 2013
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destination (4)
Foreign direct investment
•
Increased confidence in Colombia is reflected in the growing FDI flows into the country.
FDI is currently about 5 times higher than it was at the beginning of the decade;
•
Most foreign investment is concentrated in the mining and oil sectors. Investment in
communication and transportation services, as well as the manufacturing sector, have
great potential for growth in the upcoming years;
•
FDI inflows to Colombia were USD 13,438 million for the year 2011, a higher figure when
compared to the one registered in 2010 which was USD 6,758 million. Nonetheless, 2012
had the highest FDI for the period analyzed, reaching USD 15,823 million. This increase
was triggered mostly by a general investment increase in the petroleum industry of the
country, which accounted for 33.98% (USD 5,376.7million).
Annual Total FDI
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
USD Million
This increase was driven by the
purchase of
Bavaria by SAB
Miller for approximately USD 7.8
billion.
Main investors in Colombia
(2012)
Chile USD 3,074 million (56.2%);
Panama USD 699.4 million
(12.79%), England 573.5 million
(10.49%) and Anguilla USD 480.7
million (8.79%).
•
Ever since 1994, Foreign Direct Investment in Colombia has been aimed mostly at the
petroleum and mining sectors followed by manufacturing. The graph below indicates the
investment participation of the main sectors for the year 2012.
•
The main foreign direct investors in Colombia are Chile, followed by Panama, England and
Anguilla. The graph below lists the main FDI sources for the year 2012.
FDI by sector
FDI by country
Agriculture
Construction
Utilities
Trade
Transportation
Financial Services
Manufacturing
Mining
Petroleum
0,7%
1,5%
5,2%
CANADA
3,9%
LUXEMBURG
4,4%
BRASIL
6,3%
10,1%
UNITED STATES
8,6%
ANGUILLA
8,8%
10,9%
10,9%
ENGLAND
12,9%
PANAMA
14,2%
34,0%
0,0%
10,0%
20,0%
30,0%
40,0%
10,5%
12,8%
CHILE
56,2%
0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0%
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destination (5)
Doing business
•
The “2013 Doing Business Report”, ranks Colombia as the 45th best country to do
business, out of 183 countries listed in the report. Additionally, the same ranking registers
Colombia as the third Latin American country for the same purpose.
•
Moreover, according to the “2010 Financial Development Report”, one of Colombia’s best
features is the low cost of doing business which heightens the countries attractiveness to
international investors;
•
The “2010 Financial Development Report” ranks Colombia as the 6th country with the
highest strength of investor protection as well. The countries ranked before Colombia are
Singapore, Hong Kong and Malaysia. The Latin American country closest to Colombia in
the ranking is Peru, which is ranked on the 13th place.
Latin America - Best countries to do business
Country
World ranking 2013
Chile
37
Peru
43
Colombia
45
Mexico
48
Panama
61
Costa Rica
110
Argentina
124
Brazil
130
Ecuador
139
Venezuela
180
Source: Doing Business 2013
Inflation
•
Colombia’s Central Bank, fulfilling its constitutional role, has enforced strict monetary
policies in order to reduce inflation and control price variations;
•
Inflation has been under strict control for over a decade, reflecting a one digit, sustainable
rate;
•
On January 2013, analysts forecasted an end of the year inflation of 2.83%, which is, only
a little higher from December 2012.
Percentage
Inflation as of December 2012
10,00%
8,00%
6,00%
4,00%
2,00%
0,00%
Source: DANE – Statistics National Department
12
destination (6)
Income tax rate
These are the income tax rate for companies from January 1, 2013
Type of entity
Tariff
National institutions and similar entities
25%
Foreign companies that acquire their income through branches or permanent
establishments
Companies and foreign entities where income are not attributable to branches or
permanent establishments
Foreign capital investment portfolio for different dividend income
Foreign capital investment portfolio for different dividend income, if investors have a tax
haven impeachment
Foreign capital investment portfolio for dividend income
Special regime free trade zone
25%
33%
14%
25%
25%
15%
Free Trade Agreements (FTA)
In force
Signed but not in operation
In negotiation
Future
●
Andean Community of
Nations (since 1969) Ecuador,
Peru and Bolivia
● European Union
● Panama
● Dominican Republic
● EFTA (November 2008)
● Turkey
● Australia
●
G-2 (since 1995) Mexico
● Iceland
● Japan
● New Zealand
●
Mercosur (since 2005)
Argentina, Paraguay, Uruguay
and Brazil)
●
Chile (since 2009); and
●
Guatemala, Honduras and El
Salvador (since 2010)
●
USA (2012)
●
Canada
●
Iceland, Liechtenstein,
Norway y Switzerland
● Costa Rica
International Investment Agreements (IIA) and Double Taxation Agreements (DTA)
In Force
●
Double Taxation Agreements (DTA) are designed to protect investors from being taxed twice when the same income is taxable in
two countries. Currently, there are 8 DTAs (3 in force and 5 signed but not in operation).
●
International Investment Agreements (IIA) protect investors from expropriation and discrimination from other national or foreign
investors. Additionally, these treaties establish responsive procedures for dispute settlement between investors and the host
country. Currently, there are agreements in force with 10 countries.
Source: Ministry of trade, industry and tourism
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3. PPPs in Colombia
PPPs in Colombia
Private participation in infrastructure
The process of attracting private participation helped the advance in:
1- Transportation: construction, operation and maintenance of part of the public transportation
infrastructure (25 road concessions, 17 airport concessions and some port and railway
concessions).
2- Telecommunications: development of the cell-phone communications service, the opening
of the long distance market and the improvement of the television offer through open and
close TV concessions.
3- Mining and energy: improvement in the service and assurance of the supply in the long
term, through the sell of assets in the sector and the entrance of private operators.
4- Urban transportation: development of efficient transportation systems that give the citizens
safe opportunities in mobility.
The goal is to attract private investment to new sectors (healthcare, education, prisons, defense,
agriculture, urban development, culture and public buildings).
Public-private partnerships in Colombia (PPP) – Law 1508 of 2012
The law is enforceable in all those contracts where the private investor develops any of the
following activities:
1- Design and construction of infrastructure and its utilities.
2- Construction, repair, improvement, or equipment of infrastructure (these activities must
involve the operation and maintenance of the infrastructure).
3- Infrastructure for public services.
There are two kinds of PPPs:
1- Public initiative: for the selection of the PPP projects of public initiative, the prequalification
system may be used in accordance with the rules, a list of pre-qualified bidders will be
made via a public invitation.
2- Private initiative: the PPPs from a private initiative are divided in two kinds (projects that
require public funding and those which do not.)
o
o
Private initiatives that do not require expenditure of public funds: individuals can
structure public infrastructure projects or provide associated services, at their own risk,
assuming all the costs of structuring and presenting it confidentially to the entity. The
stages are: pre-feasibility and feasibility.
Private initiatives that require outlays of public funds: this kind has the same stages,
plus a public bid where if an agreement is achieved between the competent public
agency and the originator of the initiative, the Public entity will hold a public bid to select
the contractor.
Prior to the PPP law, all infrastructure projects in Colombia were made under the Law 80.
1- PPP law is overruled by law number one, which regulates port terminals
2- PPP law is overruled by mining law, which regulates mining activities
Source: DNP – Planning National Department
15
PPPs in Colombia (2)
Legal and regulatory framework of the PPP law
General provisions
1- The law applies to all sectors – minimum projects investment: USD 1.7 million.
2- Maximum term including extensions – 30 years (the term can be extended only if there is a
previous favorable concept from CONPES (Political economy and Social National Congrees).
3- Limit to additions and extensions of contracts with public budget – 20%.
4- Nation’s payments subject to service availability.
Public initiative
Private initiative
Resources Selection process
Private and/or public
Public bidding
Private + max. 20% public
Public bidding
100% private Abbreviated selection
PPP projects common provisions
1234-
Project funds are managed through SPV.
Creation of a new database of PPP projects.
Proper budget management to guarantee future payments.
A sub commission for monitoring the rules of the PPP law is created.
Decree 1467 of 2012 and decree 100 of 2013 ruling Colombia’s P3 law
General implications of a public initiative process

Selection procedure: public tender, referred to in Article 30 of Law 80 of 1993 and its
regulations.

Selection factors: the competent State entity, will verify the fulfillment of the requirements and
conditions, to determine the bidders may continue in the selection process. The best offer for
the entity is that which, according to the nature of the contract represents the best offer based
on the application of the criteria set out in paragraph 12.2 of Article 12 of Law 1508 of 2012 or
in the best cost benefit to the entity. The analysis to establish the best cost benefit to the
Company, shall take into account minimum and additional technical and economic aspects that
the bidder must meet.

Contract value: the value of the contracts of public-private partnership projects of public
initiative includes the estimated investment budget which corresponds to the construction,
repair, improvement, equipment, operation and maintenance of the project as appropriate.

Studies to open selection process for project implementation: the State entity responsible must
have the required studies. However, if the nature and scope of the project makes some of the
studies are not required, the State entity shall determine which studies are needed to open the
respective selection process.

Prequalification systems: for projects which estimated cost is more than seventy thousand
minimum monthly wages (COP 566,664), the State entity responsible might use
prequalification systems prior to the opening of the selection process, in order to use private
sector expertise to improve the definition conditions for project implementation.
16

Prequalification: the invitation to participate in the prequalification includes at least the following
information:
1- Project description and feasibility studies that support the project.
2- Time limit and physical location or address to submit the expressions of interest.
3- Show the minimum enabling requirements that are required for prequalification.

Formation of the list of prequalified: conformed by minimum two and maximum ten potential
bidders and will be published in the SECOP. If there are more than ten potential bidders who
meet the enabling requirements, the ten will be chosen through draw, as established in the
respective specifications.
Public initiative
Project idea
Feasibility studies
Social -economic studies
Technical, legal and
financial structuring
Revised by the National
Planning Department and
the Ministry of Finance
Contracting form
justification
Public
Opening of the tender
process
Requires
public
funding
PPP
Does not requre
public funding
Request for fiscal and
future years approval
PPP opening of the
tender process
General implications of a private initiative process
The newly issued Decree established that the prefeasibility stage must provide historic figures, the
government economic projections and infield inspections deemed necessary for the project. The
purpose of this stage is to propose, quantify and compare technical alternatives that allow for the
correct feasibility analysis of the project.
The proposal of a private initiative will have to provide to the national entity at least the following
information:
17
Stage 1 requirements:
Stage 2 requirements:

Name and project description

Project originator

Project scope

Project

Project specifications

Project risk

Estimated cost

Financial analysis

Sources of financing

Updated studies
Private initiatives can be presented prior to the issuance of the pre-feasibility studies made by
the structuring party (government side) of the project. This enables a private initiative to be
presented at the same time the government is contracting the structuring process of a project.
Query with other entities
and third parties
Concept Concept Not of public interest
(3 months)
Pre- feasibility
presentation
Initiative rejected
•Required studies
•Proof of financial capability
•Investment experience
•Deadline to submit feasibility
studies (2 yrs. maximum)
Qualifies as public interest
Feasibility
presentation
Public
audience
Risk and contingencies
approval
Proposal evaluation
(6 months).
The entity may ask for
complementing studies
during three month more
Acceptance
Yes
Conditions
(2 months)
No
Minister council
approval
No obligation for the
Governmental entity
Government entity
Proposal originator
Investment Project
(SMMLV)
6.000 to 40.000
40.001 to 120.000
Over 120.000
%
Bonus
10%
6%
3%
Public funding
Private funding
Public tender
(6 months)
Brief selection
(2 - 4 months)
Contract award
Right to improve
18
4. Infrastructure
projects overview
Infrastructure projects summary
The table below presents an overview of the current status of infrastructure projects in Colombia.
The table is organized by project status as described below:

Under study – Represents projects that are currently being studied, but have not yet entered
the development and structuring stage.

Tenders launched to structure the PPP bids – Represents projects that will likely be tendered
after they are structured.

Being structured – Represents projects that are currently being structured in order to begin
bidding process.

In tender process – Represents projects that are currently in the expression of interest,
prequalification or in the bidding process.
Overview of infrastructure projects in Colom bia
Status
Under study
Sector
Total
Est. investm ent
(USD m illion)
Airports
Rail
Public transportation
Ports
Fluvial
Energy
Social
Water and sew erage
1
5
6
8
3
1
1
4
29
22
8,001
5,010
160
115
500
26
2,274
16,108
Roads
Airports
Public transportation
Energy
Social
Water and sew erage
14
1
4
6
5
1
31
11,299
Not defined
713
2,966
349
102
15,429
Roads
Airports
Fluvial
16
4
1
21
81
14,500
270
630
15,400
46,937
Total in studies
Being structured
Total being structured
In tender process
Total in tender process
Total
20
a. Roads
Roads – Overview
Roads in Colombia
•
Road and highway concessions are classified into four categories: (1) national road network not
under concession (12,436 km), (2) national road network under concession (6,035 Km), (3)
secondary road network (88,348 km)) and (4) tertiary road network (35,438 km).
Overview of highway concessions in Colombia
•
Concession procurement emerged as an alternative mechanism for financing the creation,
maintenance, improvement and operation for road infrastructure.
•
Before the modification of the Colombian constitution in 1991, the infrastructure investment
came only from the government. After 1992, private investment was included as an alternative
for these kind of projects.
•
In Colombia, given the concentration of the economic activity and its irregular geography, the
infrastructure has a big impact on business costs and competitiveness.
•
According to specialists and government institutions, there is a lag in regulatory framework
investment for basic infrastructure.
•
In 1992, the government initiated a concession program that has evolved in multiple generation
of concessions.
•
The concession contracts are generally divided into generations. The 1st, 2nd and 3rd generations
have already been developed; the 4th generation is under a conformation process.
•
As of December 2010, during the past 10 years, the kilometers under concession grew by
157% in 10 years and the highways under concession increased from 11 to 25 during the same
period.
•
In 2011, the government structured the 4th generation of concessions, in order to improve and
expand the road network in Colombia.
Road and highway concessions
Netw ork road
Highw ays roads under concession
Kilometers under concession
Four lane highw ays kilometers built
2000
11
2,002
50
2011
27
6,035
875
Source: ANI - Infrastructure National Agency
22
Roads – Overview (2)
•
Several analyses about development in Colombia have argued that the deficit in infrastructure
investment, explains the lag of the country in this matter.
•
The National Development Plan (PND-Plan Nacional de Desarrollo) 2010-2014 recognizes the
importance of involving more actively the private sector in investment and in the
conceptualization process of infrastructure needs. The latter also establishes the importance of
developing schemes of Public Private Partnerships (PPPs) and explore alternative mechanisms
to channel private investment and efficient management in the modernization, construction,
operation and / or maintenance of public infrastructure. The PND specifically addresses three
areas of action: (i) Facilitation and promotion of private investment in infrastructure (strengthen
technical legal and financial structuring of projects), (ii) Public Private Partnerships as a
mechanism for public infrastructure development (encourage the use of new schemes of
project management in the context of the APP), and (iii) Continuation and strengthening
program for private participation in infrastructure (concessions).
•
More than 6,000 Km of roads will be awarded through concessions in order to complete the
national network.
•
The National Infrastructure Agency (ANI) has scheduled concessions for planned and potential
projects representing investments of USD 42,667 million to be bid on during the 2012 – 2019
period
*
Source: Infrastructure projects. ANI – Infrastructure National Agency
* To be tendered
23
Roads – Secondary market
During the first generation of
concessions there were 13 road
projects awarded, with a initial
investment of USD 869 million.
These projects had
modifications explained
lack of experience
Government in these
projects.
several
by the
of the
kind of
Highways – First generation of concessions
•
In 1992 the Government launched the program for road concessions in order to face the
challenges of globalization, economic openness and financial crisis.
•
In this stage,13 road projects were awarded for a total length of 1,649 kilometers, which
included construction of 230 kilometers and maintenance of 1,527 kilometers.
•
The estimated investments at that time was USD 869 million.
•
Out of the 13 contracts, 7 were awarded through direct contracting and 6 through public
bidding.
Concessions of the first generation
Project
Aw ard date
Length
(km )
Initial investm ent
(USD)
Corficolombiana S.A.
Buga-Tuluá-La Paila
12/11/1993
60
96
Valorcon S.A. (45%), Grupo Odinsa
(41%), Concay (4%), Others (10%)
Grupo Odinsa, Confianza S.A., Peajes
S.A., Sociedad Operadora de Vias S.A.,
Conconcreto, Mauricio Jaramillo, Jairo
Correa Gomez
Cromas S.A., Incoequipos S.A.,
Consultoria Colombiana S.A., Banco del
Estado.
Corficolombiana S.A., EPIAANDES,
Dragados y Construcciones.
Santa marta-RioachaParaguachón
02/08/1994
250
30
Malla vial del Meta
02/08/1994
190
45
Los Patios-La Calera-Guasca y
Salitre-Sopo-Briceño
02/08/1994
50
9
Bogotá-Caqueza-Villavicencio
02/08/1994
90
106
Bogotá-Siberia-La Punta-El Vino
02/08/1994
31
45
24/08/1994
109
15
24/11/1994
48
94
Fontibón-Facatativa-Los Alpes
30/06/1995
41
41
Girardot-Espinal-Neiva
10/07/1995
150
43
Desarrollo vial del oriente de
Medellin y Rio Negro
23/05/1996
349
110
Concessionaire
Ow ners
Proyectos de Infraestructura S.A.
Concesion Santa Marta Paraguachon S.A.
Carreteras Nacionales del Meta
Consorcio La Calera *
Concesionaria Vial de los Andes
S.A.
Concesion Sabana de Occidente
S.A.
Consorcio Via al Mar
Union Temportal Devinorte
Concesiones CCFC S.A.
Consorcio Solarte Ingenieros
Constructores
Devimed S.A.
Mario Huertas
Edgardo Navarro Vives (50%),
Cartagena-Barrranquilla
Consultores del Desarrollo (50%)
Mincivil (55%), Equipo Universal (16%),
Castro Tcherassi (13%), Civilia (8%), Desarrollo vial del norte de Bogota
Others (8%)
Proyectos de Infraestructura (50%),
Colcorp S.A. (26%), Conconcreto (24%)
Luis Carlos Solarte and Carlos Alberto
Solarte
Procopal S.A.,Conconcreto S.A., Mario
Huertas, Castro Tcherassi-Equipos
Universal, Wackenhut de Colombia,
Cano Jimenez y Fidiciaria Industrial
Autopista del Cafe S.A.
Odinsa, Megaproyectos
Armenia-Pereira-Manizales
21/04/1997
219
197
Consorcio Concesion CienagaBarranquilla
Edgardo Navarro Vives
Barranquilla-Cienaga
Not available
62
31
1,589
766
Total
Source: CEPAL – Serie de recursos naturales e infraestructura N° 138, ANI – Infrastructure National Agency
* This concession ended, so it was returned to the INVIAS.
•
A characteristic of these projects in this first stage was the high number of modifications,
explained by the lack of experience of the Government in these kind of projects. The
weaknesses in this stage were:
•
Delay in disbursement;
•
Delay in the approval of the environmental licenses;
•
Changes in the initial designs;
•
Changes in land inventory; and
•
Relocation and removal of toll booths.
24
Roads – Secondary market (2)
Highways – Second generation of concessions
In the second generation, 2 road
projects were awarded with an
initial estimated investment of
USD 674 million.
This generation improved both
institutional coordination as well
as technical, financial and legal
mechanisms.
•
The guidelines established in this new generation, mainly established a better redistribution of
risk and higher levels of detail in the road designs.
•
The guidelines established for this generation phase stated that contractors should complete
the achievement of environmental licenses and land records before construction began.
•
The second-generation road concessions improved both institutional coordination as well as
technical, financial and legal mechanisms for these kind of projects.
•
The disadvantage in this phase was the mechanism of selection for the firms in the bidding
process, which ultimately led to inappropriate incentives. Also, there were significant delays in
the road construction progress.
•
During this generation, 2 road projects were awarded for a total length of 1,041 kilometers.
•
The estimated investment at that time was USD 674 million.
Concessions of the second generation
Concessionaire
COMMSA (Consorcio vial del
Magdalena Medio)*
Union Temporal Desarrollo Vial
del Valle del Cauca y Cauca
Ow ners
ACS Dragados, SACYR, Julio Gerlein,
Castro Tcherassi, Equipos Universal
Hermanos Solarte (59%), Sideco (21%),
Pavimentos Colombia (20%)
Project
El Vino-Tobiagrande-Puerto
Salgar-San Alberto
Aw ard date
Length
(km)
Initial investment
(USD)
24/12/1997
571
379
Malla vial del Valle del Cauca
29/01/1999
470
295
1,041
674
Total
* The contract expired due to breach of contract.
•
There was a strong resistance of the Colombian financial sector to support these concessions,
because of the design problems of the first generation, the economic situation and the financial
sector crisis in 1997.
El Vino – San Alberto Project
Valle del Cauca Project
25
Roads – Secondary market (3)
In the third phase, 14 road
projects were awarded, for
an
initial
estimated
investment of USD 4,433
million.
Highways – third generation of concessions
•
During 2002-2010, the government continued promoting the privatization of road infrastructure
projects. The third generation started in 2002 and the Government designed a program which
included 14 road projects under concession.
•
In this stage there were awarded 3,567 kilometers and the estimated investment at that time
was about USD 4,433 million.
Concessions of the third generation
Project
Aw ard date
Length
(km )
Initial investm ent
(USD)
Zipaquira-Palenque
27/12/2001
371
15
Briceño-Tunja-Sogamoso
15/07/2002
219
128
Bogota-Girardot
01/07/2004
283
197
Pereira-La Victoria
02/08/2004
57
42
Rumichaca-Pasto-Chachagui
21/11/2006
116
116
Area metropolitana de
Bucaramanga
06/12/2006
47
46
Cordoba Sucre
02/02/2007
125
86
Area Metropolitana de Cucuta y
Norte de Santander
22/06/2007
131
66
Aseo Técnico S.A, Codesa S.A,
Constructora Colpatria S.A,
Constructora San Isidro S.A, H.B
Estrcuturas Metálicas S.A, Latinco S.A,
Mincivil S.A, Sadelec S.A, Termotecnia
Coindustrial S.A, Topcp S.A
Girardot-Ibague-Cajamarca
13/07/2007
131
139
Autopistas del Sol S.A.
CICÓN S.A, KMA Ltda, Concesiones y
Construcciones Ltda, Constructora EMA
Ltda, Técnica Vial Sdad. EN C.A, CI
GRODCO Sdad. EN C.A, Obras
Especiales OBRESCA S.A, Constructora
VIALPA S.A, Tecnoconsulta Ltda,
Change Consulting Group Colombia S.A
Ruta Caribe
28/07/2007
293
98
Consorcio Vial Helios
Carlos Alberto Solarte (25%),
Conconcreto (25%), CSS Constructores
S.A. (25%), IECSA S.A. (25%)
Ruta del Sol - Sector I
15/12/2009
Ruta del Sol - Sector II
15/12/2009
1,071
2,600
Ruta del Sol - Sector III
22/07/2010
Transversal de las Americas
05/08/2010
Concessionaire
Ow ners
Concesión Vial de Cartagena S.A.,
Union Temporal Concesion Vial
Valores y Contratos S.A., Alvarez y
los Comuneros *
Collins S.A.
Consorcio Solarte Ingenieros
Luis Carlos Solarte, Carlos Alberto
Constructores
Solarte
Alejandro Char Chaljub, MNV S.A., Gas
Concesion Autopista BogotaKpital GR S.A, Vergel y Castellanos
Girardot S.A.
Ingenieros Asociados V y C ltda,
Álvarez Collins S.A.
Icein S.A. (22%), Mario Alberto Huertas
(22%), Pavimentos de Colombia (22%),
Concesionaria de Occidente S.A.
Concay S.A. (22%), Aguiler
Construcciones S.A. (10%), Estudios
Tecnicos S.A. (2%)
Concay S.A, Incoequipos S.A,
Ingenieros Constructores GAYCO S.A,
A & D Alvaro & During S.A, Nacional de
Desarrollo Vial de Nariño S.A. Pavimentos LTDA, CEI S.A, Estudios
DEVINAR
Tecnicos S.A, TIN LTDA, JMV
Iingenieros Contratistas LTDA,
Inversiones Rodriguez y Rincon LTDA
Cicon S.A KMA LTDA, Constructora
EMMA LTDA, Bernardo C. y CIA.LTDA,
Tecnica Vial S.en C.A, CI Procesadora
Autopistas de Santader S.A.
de Asfaltos en C.A, CI GRODCO S. en
S.A Ingenieros Civiles, Garzon
Ingenieros y Asociados LTDA, Vanegas
y Garzon LTDA
Obras Especiales Obresco (28%), CI
Autopistas de la Sabana S.A.
Grotco (16%), Tecnica Vial (12%),
Others (44%)
Concesionaria San Simon S.A.
Concesionaria San Rafael S.A.
Consecionaria Ruta del Sol S.A.S
YUMA Concesionaria S.A.
Consorcio Vias de las Americas
S.A.S. PSF
Odebrecht Invet Infra (37%), Estudios y
proyectos del Sol EPISOL (33%),
Constructora Norberto Odebrecht
(25%), Constructores S.A. (5%)
Impregilo (40%), Infracon (29%), Capital
privado RDS (17%), Grodco S en S.A
(13.80%), Tecnivial S.A (0.50%)
Odinsa (33%), Valorcon (33%),
Construcciones el Condor (33%)
Total
723
900
2,844
4,433
* This concession ended, so it was returned to the INVIAS.
26
Roads – Primary market (1)
1- FONADE Group 1: corresponds to the Honda – Puerto Salgar – Girardot section.
Honda - Puerto Salgar - Girardot
Road
Length
(km )
Existing
tolls
New
tolls
5
-
-
37
52
44
1
1
27
48
213
Variante Flandes - Girardot
Girardot - Guataqui
Guataqui - Cambao
Cambao - Puerto Bogota
Puerto Bogota - Puerto
Salgar
Honda - Puerto Salgar
Est. Investm ent
(USD m illion)
1
-
AADT
2015
Not
available
1,320
1,320
1,340
-
1
3,760
100
1
-
8,745
197
681
72
89
121
102
Source: ANI – Infrastructure National Agency
Intervention
•Construction of one vehicular bridge and their approaches, on
the Magdalena River (Flandes bridge – 400 m), completing a
double lane path and the mentioned road connection
•Construction of a road connection (or variant) between Girardot
– Flandes (Cundinamarca)
•Construction of two road exchangers: one at the intersection of
the road connection Girardot – Nariño with the Chicoral variant
and the second, on the road Girardot –Nariño – Guataquí –
Cambao
•Construction of a variant in Cambao
•Improvement of the road between Girardot – Cambao – Puerto
Bogota, as needed
•Improvement of the road between Puerto Bogota and Puerto
Salgar
•Construction of an exchanger in Puerto Bogota.
•Rehabilitation and maintenance of the road between Puerto
Salgar – La Dorada – Honda (Route 45)
•Construction of the Puerto Salgar bridge over the Magdalena
river and its approaches (320 m)
Existing
road
New road
Flandes
K 0+000
Girardot
K 6+000
Nariño
K 17+000
Cambao
K 94+000
Pto. Bogotá
K 132+000
Pto. Salgar
K 158+000
Honda
K 212+000
Exchanger Bridge
Source: ANI – National Infrastructure Agency
Current Status
In tender process
27
2- FONADE Group 1: corresponds to the Neiva – Girardot section.
Neiva - Girardot
Length
(km )
58
127
185
Road
Girardot - Castilla
Castilla - Neiva
Existing
tolls
1
2
New
tolls
AADT
2015
5818
2600
Est. Investm ent
(USD m illion)
440
163
603
Intervention
•Improvement, rehabilitation and maintenense of the road
•Double-lane road San Rafael – Espinal (7.78 km)
•Construction of a double line variant in Espinal
•Construction of a double line Espinal – El Guamo (11.17 km)
•Construction of a double line variant in El Guamo
•Construction of a double line El Guamo – Saldaña (9.2 km)
•Construction of a double line variant in Saldaña
-Construction Bridge Saldaña river (100 m)
Construction of a double line Saldaña – Castilla (9.9 km)
Construction Bridge Patá river (120 m)
Construction Bridge Magdalena river (130 m)
Girardot
K 0+000
Espinal
K 6+000
El Guamo
K 17+000
Saldaña
K 94+000
Castilla
K 132+000
Neiva
K 212+000
Existing
road
New road
Exchanger Bridge
Current Status
Expression of interest
28
3- FONADE Group 1: corresponds to the Santana – Pitalito - Neiva section.
Santana - Pitalito - Neiva
Length
(km )
22
156
52
230
Road
Neiva - Campoalegre
Campoalegre - Pitalito
Pitalito - Santana
Existing
tolls
1
1
-
New
tolls
1
AADT
2015
5,800
4,100
1,400
Est. Investm ent
(USD m illion)
152
267
213
632
Intervention
Neiva
K 0+000
•Double-lane road Neiva – Campo Alegre
•Construction of intersection Vin Los Cauchos
•Construction of a variant in Campo Alegre
•Construction of a bridge in the variant Campo Alegre
Los
Cauchos
•Improvement of the road between Campo Alegre and Pitalito
•Construction of a variant in Hobo
•Construction of a bridge in the variant Hobo
•Bridge between Hoho and Gigante
•Construction of a variant in Gigante
•Construction of a bridge in the variant Gigante
•Construction of a variant in Timaná
•Construction of a tunnel after Pitalito
Campo
Alegre
K 22+000
Hobo
Gigante
Timaná
Pitalito
K 188+000
•Improvement of the road between Pitalito and Santana
•Construction of a variant in Mocoa
•New road between Pitalito – San Agustin
Mocoa
Santana
K 230+000
Existing
road
New road
Exchanger Bridge
Tunnel
Current Status
29
4- FONADE Group 2: corresponds to the Mulalo – Loboguerrero – Cali section.
Mulalo - Loboguerrero - Cali
Length
(km )
32
52
83
Road
Mulalo - Loboguerrero
Loboguerrero - Cali
Existing
tolls
-
New
tolls
1
1
AADT
2019
5,978
3,512
Est. Investm ent
(USD m illion)
782
35
817
Intervention
•Double-lane road Mulaló - Loboguerrero
•Two tunnels, the first one crossing the Alto de Cresta de
Gallo de 3.2 kms and the second one in Loboguerrero de 5.4
kms. These will be added to the short tunnels that complete
an entire length of 12 kms
•31 bridges with distances that may be higher than 200 mt
and that add up to 2.75 kms in total
• Construction of intersection Vía Panorama
•Rehabilitation and maintenance of the road between
Loboguerrero – Dagua – Cali
•Double lane construction of the trench in Pavas-La Cumbre,
pedestrian crossings and lightweight traffic. Noise reduction
barriers, and visual pollution reduction is also required
•Construction of intersection vía Cali- Dagua – Loboguerrero
Mulalo
K 0+000
Loboguerrer
o
K 32+000
Cali
K 84+000
Existing
road
New road
Exchanger
Bridge
Tunnel
Current Status
In tender process
30
5- FONADE Group 2: corresponds to the Popayán- Santander de Quilichao section.
Popayán - Santander de Quilichao
Length
Road
(km )
Santander de Quilichao 77
Popayán
77
Existing
tolls
New
tolls
AADT
2015
Est. Investm ent
(USD m illion)
1
-
8,000
635
635
Intervention
•Double-lane road Santander-Popayán
•Improvement, rehabilitation and maintenance of the existing
road
Santader
de
Quilichao
K 0+000
Popayán
K 77+000
Existing
road
New road
Exchanger
Bridge
Current Status
31
6- FONADE Group 2: corresponds to the Rumichaca-Pasto section.
Rum ichaca - Pasto
Length
(km )
83
83
Road
Rumichaca - Pasto
Existing
tolls
-
New
tolls
-
AADT
2015
4500 - 16000
Est. Investm ent
(USD m illion)
830
830
Intervention
•Double-lane road Rumichaca-Pasto
road
Rumichaca
K 0+000
Pasto
K 83+000
Existing
road
New road
Exchanger
Bridge
Current Status
32
7- FONADE Group 3: corresponds to the Bogota eastern corridor.
Bogota eastern corridor
Road
Briceño - Sopo
Guasca - Sesquile
Sopo - El Salitre - La Calera
Patios - La Calera
Bogota - Choachi
La Calera - Choachi
Choachi - Caqueza
Variante Choachi
Length
(km )
Existing
tolls
New
tolls
Est. Investm ent
(USD m illion)
-
AADT
2015
13,876
2,052
7,007
10,492
1,696
1,231
42
-
0.5
24
-
0.5
32
1
1.0
31
-
28
-
1
1,231
139
58
48
56
187
157
488
Briceño Km 0
Sopo Km 4
•Double-lane road Briceño- Sopo and improvement of existing
road
•Exchanger in Briceño connecting Tunja and Sogamoso.
•Rehabilitation El Salitre – Guasca
•Exchanger La Calera - Sopo
Salitre
Stretch
Briceño
Caqueza
82 Km
Guasca
Intervention
Briceño – La Calera
• Improvement, rehabilitation and
maintenance of the existing road
Patios
Patios – La Calera
Bogotá Cr 7a
Calle 85
La Calera Km 29
Construction of
stretch Km 6 -12
La Calera - Choachi
La Calera – Choachi - Caqueza
•Improvement of the existing road
•9 viaducts totaling 794 mt
•Construction Choachí variant
Choachi Km 57
Caqueza Km 87
Current Status
In tender process
33
8- FONADE Group 3: corresponds to the Bogotá- El Tablón section.
Bogotá - El Tablón
Length
(km )
34
34
Road
Bogotá - El Tablón
Existing
tolls
1
New
tolls
-
AADT
2015
11,466
Est. Investm ent
(USD m illion)
1,074
1,074
Intervention
• Improvement, rehabilitation and maintenance of the existing
road
• Improvement, rehabilitation and maintenance of the existing
Tunnel (Boquerón)
•Double-lane road Bogotá – El Tablón
Bogotá
K 0+000
El Tablón
K 34+000
Existing
road
New road
Exchanger
Bridge
Current Status
34
9- FONADE Group 3: corresponds to the Villavicencio- Arauca section.
Villavicencio - Arauca
Road
Villavicencio - Cumaral
Cumaral - Aguazul
Aguazul - Yopal
Length
(km )
19
216
31
265
Existing
tolls
1
3
New
tolls
1.0
AADT
2015
10110
4000
8,226
Est. Investm ent
(USD m illion)
140.5
500
195
836
Intervention
• Double-lane road Villavicencio-Cumaral
road
road
• Double-lane road Aguazul-Yopal
road
Villavicencio
K 0+000
Cumaral
K 19+000
Aguazul
K 235+000
Yopal
K 265+000
Existing
road
New road
Exchanger
Bridge
Current Status
35
10- FONADE Group 4: corresponds to the Cartagena – Barranquilla – Malambo section.
Cartagena - Barranquilla - Malam bo
Length
(km )
110
37
146
Road
Cartagena - Barranquilla
Barranquilla - Malambo
Existing
tolls
2.5
-
New
tolls
1
AADT
2015
8,924
17,200
Est. Investm ent
(USD m illion)
386
249
634
Intervention
•Construction of a second lane
•Viaduct construction in Cienaga de la Virgen
•Existing bridges rehabilitation
•Rehabilitation and maintenance of the road between
Cartagena and Barranquilla
Cartagena
K 0+000
Barranquilla
K 78+000
•New road construction
•Pedestrian crossings construction
•Exchanger Malambo – Soledad
•Exchanger with La Cordialidad road
•Exchanger with Galapa
Malambo
K 145+000
Existing
road
New road
Exchanger
Bridge
Current Status
In tender process
36
11- FONADE Group 4: corresponds to Puerta del Hierro – Palmar de Varela and Carreto – Cruz
del Viso sections.
Puerta del Hierro – Palm ar de Varela and Carreto – Cruz del Viso
Length Existing
New
AADT
Road
(km )
tolls
tolls
2015
Puerta del Hierro – Carmen
41
2
3520
de Bolivar
Camen de Bolivar - Cruz del
68
3936
Viso
Carreto - Palmar de Varela
28
1
2,928
137
Est. Investm ent
(USD m illion)
87
68
88
243
Intervention
•Improvement, rehabilitation and maintenance of the road
•Construction Carmen de Bolivar variant (double line)
•Exchanger Carmen de Bolivar
Puerta del
Hierro
K 0+000
Carmen de Bolivar
K 41+000
Cruz del Viso
K 109+000
Carreto
K 0+000
Palmar de Varela
K 28+000
Existing
road
New road
Exchanger
Bridge
Current Status
37
Autopistas para la prosperidad
The bidding process for awarding those concessions is expected to start by the first semester of
2013 for early wins and second semester of 2013 for others. The estimated investment for all the
concessions is USD 7,027 million. These highways are divided in 9 groups of concessions as
follows:
Autop istas p ara la p rosp eridad
Connections
Concession
North connection highway
Magdalena 2 river highway
Pacific 1 conection highway
This highway connects production and supplies sources for
industrial centers in Cundinam arca, the Magdalena River
valley, Antioquia, the coffee area and the south of the
country; with the Atlantic coast and the Cordoba, Sucre and
Bolivar savannas
This highway connects production and supplies sources for
industrial centers in the west of the country (Antioquia,
coffee area and Valle del Cauca); with the Magdalena River,
Cundinam arca and the northeast of the country
The Pacific concessions (3) intend to connect production and
supplies sources for industrial centersin the north of the
country (Magdalena, Atlantico, Bolivar, Cordoba, Sucre and
Antioquia); with the coffee area, Valle del Cauca and the
pacific
Highway to the sea (1)
This highway starts in Medellin until Cañasgordas, passing
through Santa Fe de Antioquia. It also includes the tranch
between Santa Fe de Antioquia and Bolom bolo
Highway to the sea (2)
This highway starts in Cañasgordas until El Tigre, passing
through Uram ita, Dabeiba and Mutata, this concession is
connected with the Transversal de las Am ercias concession
Highway to the Magdalena River (1)
Caucasia - Donm atias
This highway starts in Bello until Alto de Dolores, passing
through Hatillo, Porcecito and Cisneros. It also includes the
tranch between Hatillo and Donm atias
This highway starts in Donm atias until Caucasia, passing
through Yarum al and Taraza
38
1- North connection highway
North connection highw ay concession
Rem edios - Zaragosa - Caucasia
Length
Road
(Km )
Remedios - Zaragosa
Zaragosa - Caucasia
Existing
tolls
-
New
Tolls
1
1
AADT
2020
6087
6691
AADT
2039
10497
11561
Requirements for the p articip ants in the announcement
The following requirements are taken into account for the p requalification
p rocess
Financial Cap acity
-Equity capacity (USD 268 m illion: Plural structures: Equity m ay be added up but,
one of the leaders m ust, at least, have USD 108 m illion).
-Debt ratio (Financial Corporation: 90%; All others: 85%).
-Line of credit (USD 134 m illion)
Investment Exp erience
-Accreditation of investm ent experience in public-private partnership contracts for
infrastructure:
-1. An infrastructure project concession which financial close m ust be of, at least,
USD 168 m illion; or 2. Four (4) concession project that sum up USD 224 m illion
and one of them m ust be at least USD 112 m illion.
Intervention
•Construction of new road.
• Construction of 38 new bridges on the left hand trench with a total
length of 3,205 mts.
• Existing bridges on the left hand trench: 7, with a total length of 1,270
mts.
• Construction of new bridges on the right hand trench: 54, with a total
length of 4,937 mts.
•Intersections: 1, New returns: 11, Tunnels: 1 (4,900 mts)
•Improvement of the existing road.
• 4 new tunnels on the left hand trench with a total length of 753 mts.
•4 new tunnels on the right hand trench with a total length of 680 mts.
•57 left hand side bridges of a total length of 4,863 mts.
•54 right hand side bridges of a total length of 4,457 mts.
•8 new returns
•No intersections
Existing
road
New road
Exchanger Bridge
Caucasia
K 82+600
Tunnel de
La Quiebra
4,900 mts
Zaragoza
K 00+000
111 new
bridges
Remedios
(Otu)
K 57+800
Tunnel
Current Status
In tender process
39
2-
Magdalena 2 river highway
Magdalena 2 river highway concession
Ruta del Sol conection - Alto de Dolores - Remedios
Length Existing
New
Road
(Km)
tolls
Tolls
Rutal del Sol conection - Alto de Dolores
1
1
Alto de Dolores - Rem edios
1
AADT
2020
3,204
6,691
AADT
2039
5,903
11,561
Requirem ents for the participants in the announcem ent
The follow ing requirem ents are taken into account for the
prequalification process
Financial Capacity
-Equity capacity (USD 370 million: Plural structures: Equity may be added up but,
one of the leaders must, at least, have USD 150 million).
-Line of credit (USD 185 million)
Investm ent Experience
- Accreditation of investment experience in public-private partnership contracts for
infrastructure:
-1. An infrastructure project concession w hich financial close must be of, at least,
USD 235 million; or 2. Four (4) concession project that sum up USD 310 million and
one of them must be at least USD 155 million.
Current Status
In tender process
40
3-
Pacific 1 connection highway
Pacific 1 conection highw ay concession
Bolom bolo - Prim avera - Ancon Sur
Length
Road
(Km )
Bolombolo - Primavera
Primavera - Ancon Sur
Existing
tolls
1
-
New
Tolls
1
AADT
2020
15,332
17,884
AADT
2039
26,992
30,035
Financial Capacity
-Accreditation of investment experience in public-private partnership contracts for
infrastructure:
Current Status
In tender process
41
4-
Bolom bolo - La Pintada - Prim avera
Length
Road
(Km )
Bolombolo - La Pintada
La Pintada - Primavera
Existing
tolls
1
1
New
Tolls
-
AADT
2020
8,252
2,552
AADT
2039
14,022
4,981
Financial Capacity
infrastructure:
Current Status
In tender process
42
5-
La Virginia - Asia - La Felisa - La Pintada
La Virginia - Asia - Tres Puertas - La Manuela
La Virginia - Asia - Irra - La Feliza - La Pintada
Length
Existing
Road
(Km )
tolls
La Virginia - Asia
1
Asia - La Felisa
1
La Felisa - La Pintada
1
Asia - Tres Puertas
Tres Puertas - La Manuela
Asia - Irra
Irra - La Feliza
La Feliza - La Pintada
1
New
Tolls
1
2
-
1
AADT
2020
2,970
809
6,825
AADT
2039
8,194
861
13,022
6,764
7,904
6,825
13,022
Financial Capacity
infrastructure:
Current Status
In tender process
43
Fondo de Adaptacion
The project includes 2.266 km in the following groups of roads:
1234567-
Manizalez – Honda – Villeta (220 km)
Bogota – Bucaramanga – Pamplona (543 km)
Tunja – Chiquinquira – Puerto Boyaca (315 km)
Puerto Gaitan – Puerto Araujo (571 km)
Duitama – Pamplona – Cucuta (309 km)
Cucuta – Aguaclara – Puerto Capulco (257 km)
Cucuta – Puerto Santander (51 km)
Est. investment (USD million)
Phase
Type of initiative
5,428
Tenders launched to structure the PPP bids
Public
Fondo de Adaptacion: for this project, two roads are defined as early wins:
–
–
Duitama – Pamplona – Cucuta (309 km)
Cucuta – Aguaclara – Puerto Capulco (257 km)
The early wins shown are subject to be modified by the structuring consulter.
Other corridors
The corridors included are:
1- Cucuta – Tibu – La Mata (331 km)
2- Bucaramanga – Barrancabermeja – Yondo (128 km)
Phase
Type of initiative
Kilometers
871
Under study
Public
459
44
b. Airports
Airports - Overview
Overview of airport concessions in Colombia
•
In Colombia, the Special Administrative Unit of Civil Aeronautics (Aerocivil) is in charge of the
development and growth of aeronautics as well as of controlling air traffic within the Colombian
air space.
•
Concessions related to airport construction are currently managed by the Aerocivil, but in the
near future, the National Infrastructure Agency will take over this task.
•
According to Aerocivil, Colombia has 13 international airports, 70 aerodromes managed by
Aerocivil, 344 private aerodromes, 167 aerodromes owned by districts and 49 communitary
aerodromes.
•
From the aforementioned list, 14 airports are currently under concession.
Source: Aerocivil – Special Administrative Unit of Civil Aeronautics
46
Airports – Secondary market
Current airport concessions
Concessionaires
OPAIN S.A.
Concessions
Ow ners (operating partner)
Country of
Origin
Aw ard date
Investm ents
(USD m illion)
- El Dorado Airport
(Bogota)
GRUPO ODINSA S.A. (29.99%), CSS
CONSTRUCTORES S.A. (24.98%), GRUPO CONDOR
INVERSIONES S.A. (14.99%), MARVAL S.A. (10%),
TERMOTÉCNICA COINDUSTRIAL S.A. (10%),
ARQUITECTURA Y CONCRETO S.A. (5%),
CONSULTORIA COLOMBIANA S.A. 5%
Colombia
19/01/2007
750
Colombia and
China
03/03/2008
- Rio Negro Airport
Malibú S.A. (14.50%), FERNANDO MAZUERA Y CIA
S.A. (14.50%), Información y Técnología S.A. (10%),
- Monteria Airport
CAH COLOMBIA S.A. 20%, PORTALES URBANOS
S.A. (10%), SOCINSA
- Quibdo Airport
(10%), Supertiendas OLIMPICA S.A. (9%), NOARCO
- Carepa Airport
S.A. 8%, INTELRED S.A.
- Corozal Airport
- Medellin Airport
Sociedad Operadora de
Aeropuertos Centro Norte S.A.
166
- Santa Marta
Airport
Sociedad Aeropuertos de
Oriente S.A.S
Korean Airport Corportation - Operator
Olímpica SA. (32.91%), Incoequipos SA. (30.38%),
- Barrancabermeja
Nexus Infraestructura FCP (30.17%), Pedro Ramon
Airport Emiliani (3.80%), Nexus Infraestructura SAS (2.74%)
- Cucuta Airport
01/08/2010
Colombia
66
- Valledupar Aiport
Aerocali S.A.
Concesión Aeropuertos San
Andrés y Providencia S.A.
CASYP S.A.
Sociedad Aeroportuaria de la
Costa S.A. – SACSA S.A.
Total
- Cali Airport
AENA DESARROLLO INTERNACIONAL S.A.
(66.67%), DCORPORACION FINANCIERA
COLOMBIANA S.A. (33.33%)
Spain Colombia
02/09/2000
27
- San Andres and
Providencia Airport
ESTUDIOS TÉCNICOS S.A. (17.84%), VICON S.A.
(17.84%), CONINSA Y RAMÓN H. S.A. (17.84%),
A.I.A.S.A. (17.84%), CONSTRUCCIONES CF LTDA.
(8.44%), AGENCIAS UNIVERSALES S.A. AGUNSA.
(5.00%), CONSTRUTEL LTDA. (7.60%), PEDRO
RAMÓN EMILIANI CATINCHE (7.60%)
Chile Colombia
14/03/2007
20
- Cartagena Airport
AENA DESARROLLO INTERNACIONAL S.A.
(37.89%), AVIATUR S.A. (1.22%), CAYETANO
RODRÍGUEZ CARLOS (5.12%), CICON (0.49%),
CONCECOL LTDA (11.55%), COSTASFALTO LTDA
(3.50%), ENRIQUE JOSE GHYSAYS MANZUR
(1.22%), INMOBILIARIA FINCA RAIZ S.A. (1.22%),
INVERSIONES CAVALIER LEQUERICA (3.03%),
INVERSIONES MEJÍA HOYOS Y CIA. S. EN C.
(0.61%), INVERSIONES SILLAR SEGOVIA Y CIA. S.
EN C. (5.81%), INVERSIONES VILLEGAS NÚÑEZ Y
CIA. S. EN C (0.61%), MOVICON LTDA (0.54%),
NAGA LTDA (1.09%), ORLANDO CABRALES
MARTÍNEZ (3.22%), PROMOCIONES NOERO E HIJOS
Y CIA S. EN C. (3.03%), RAMÓN PEREIRA VISBAL
(2.18%), RODOLFO GEDEON GHISAY (7.59%),
TERPEL DEL NORTE S.A. (10.06%)
Spain Colombia
03/05/1996
5
1,034
Source: Aerocivil – Special Administrative Unit of Civil Aeronautics
Airports – Primary market
•
The air transportation sector has experienced a great development, especially in airports with a
high number of passengers and with a high coverage of the country. The airport infrastructure
includes 581 airports, of which 70 are in charge of Aerocivil and other local authorities and the
private sector. The operation of major airports in the country is under concession. Due to the
favorable economic conditions in the country and new free trade agreements, the number of
cargo and passengers has increased, which has created pressures to improve conditions of
service airports such as Bogotá, and the need to strengthen regional aviation and optimize the
airports network under the responsibility of Aerocivil (soon to be transferred to ANI).
•
In the beginning of 2012 the Barranquilla Airport concession ended and it is currently being
operated by Aerocivil . A public initiative for an APP for the operation of this airport is already in
the prequalification process.
•
In the second semester of 2013 the ANI issued the prefeasibility studies for the Southwest
Airports (Armenia, Neiva and Popayan airports) and the Barranquilla Airport. 23 societies
manifested their interest in being part of the PPP process.
•
The table below provides additional detail on the concessions.
Airp ort p rojects
Phase
Initiative
Est. investment
(USD million)
Under study
Private
22
Barranquilla Airport
In tender process
Public
139
Arm enia Airport
In tender process
Public
59
Neiva Airport
In tender process
Public
39
Popayan Airport
In tender process
Public
32
Cartago Airport
Being structured
Public
Not available
Project
Santa Marta Airport*
Source: ANI – Infrastructure National Agency and DNP – Planning National Department
* Local news
Under the National Development Plan (PND), ANI´s objectives for the public initiatives are:
•
To improve economic dynamic by potentiate growth and development of the airports.
•
To guaranty the increase of (i) national and foreign passenger traffic, (ii) cargo traffic, and (iii) the
development of airport-associated businesses.
•
To improve current airport infrastructure conditions.
•
To improve life quality for the airports’ surrounding area.
•
To improve passengers’ comfort.
•
To improve economic and social conditions within the municipalities where the projects are
being developed, and
•
To guaranty the long-term maintenance of the air transport infrastructure.
48
Airports – Primary market (2)
Barranquilla Airport
The Ernesto Cortissoz International Airport, located 12 km from the center of Barranquilla, is
Colombia’s fourth busiest cargo airport and fifth busiest airport by passenger traffic. This 20-year
concession considers a modernization plan divided in three phases of mandatory works:
1- Short-term (Year 1 to 5): Airstrip repair, new cargo terminal construction, cargo platform
extension and boarding bridges renewal, among others.
2- Mid-term (Year 6 to 10): Passenger terminal extension, new corporative offices
construction, electric equipment renewal, commercial platform extension , among others.
3- Long-term (Year 11 to 20): Cargo platform and perimeter roads resurfacing , signaling
renewal, cargo building extension, equipment replacement, among others.
Phase
Type of initiative
139
In tender process
Public
Source: Prefeasibility ANI
Santa Marta Airport
The project seeks to improve the actual airport in the city of Santa Marta. The objective of this
project is to have a better air terminal in Santa Marta to become a main tourism destiny in the
hemisphere.
Phase
Type of initiative
22
Under study
Public
Source: El Espactador - Newspaper
Southwestern Airports
The project objective is to give the concession of (i) El Eden International Airport (Armenia), (ii)
Benito Salas Vargas Airport (Neiva), and (iii) Guillermo Leon Valencia Airport (Popayan). Concessions
are considered to be for 20 years of modernization, administration, operation, maintenance and
commercial exploitation.
•
During 2012 El Eden International Airport (Armenia) operated 305.214 passengers and 478 tn of
cargo. Demand is expected to boost due to increasing tourism projects over the coffee-growers
axis. The airport currently operates international flights to Aruba and Fort Lauderdable
•
Neiva Airport is rapidly increasing it passenger and cargo traffic due to the large infrastructure
projects recently developed and the growing oil and gas activity in the region.
•
Popayan airport currently operates over 84.000 passenger per year and the demand is expected
to increase in the short term due to new flights offer from Avianca and Viva Colombia airlines.
Phase
Type of initiative
130
In tender process
Public
Source: Prefeasibility ANI
49
c. Railways
Railways - Overview
•
The railway network covers 3,300 Km, of which approximately 799 are in operation under
concession contract. Non concession infrastructure has been in the process of rehabilitation for
several years, yet there are still about 1,510 Km of inactive lines. Rail freight movement is
significant in the case of coal, but low in the case of general cargo (in 2009, nearly 60 million
tons of coal compared to only 250 thousand from the rest of cargo). Several studies have
identified an important role by the intermodal rail operation and the mobilization of general cargo.
•
PPP projects are expected to develop 1,258 Km of rail corridors, such as the Central Rail System
(along the Magdalena River valley) and in the Cundiboyacense plateau.
•
The railway concessions bidding process is expected to begin in the first quarter of 2013.
•
The table below provide additional details on the “private initiative presented”.
•
In 1995 the Government launched the rail concessions program.
Railw ays concessions
Kilometers
Kilometers
Kilometers
Kilometers
of existing rail netw ork
of public netw ork
of public netw ork in operation
in private operation
1,672 km
1,488 km
743 km
184 km
Source: National Planning Department
.
51
Railways – Secondary market
Public Concessions
Colom bian public rail concessions
Route
Concessionaire
Ow ners
(operating
partner)
Country
Start End Length
Chiriguana (PK 724) Cienaga (PK 934) - Santa
Marta (PK 969) - Pto
Berrio (PK 333) - Medellin
(Bello) (PK 509).
Fenoco S.A.
Drummond Ltd. and Sw itzerland
2000 2030 245 Kms
(Ferrocarriles del
Prodeco Corp Vale
& USA
Norte S.A.)
Buenaventura (PK 0) –
Cali (PK 170); Cali (PK
170) – La Felisa (PK
459); Zarzal (PK 304) –
La Tebaida (PK 343)
Sociedad
Concesionaria de
la Red Férrea del
Pacifico
S.A.(CRFP), hoy
Sociedad
Ferrocarril del
Oeste S.A.
Railroad
Development
Corporation,
Mariverdo, OPP
Graneles, Nexus
Main
Cargo
Coal
Capacity
45 millions
of tons
Bulk, iron,
USA,
3,2 millions
electronics,
Colombia & 2000 2030 498 kms
of tons in 3
cement,
Israel
years
sugar
Source: ANI – Infrastructure National Agency.
52
Railways – Primary market
•
The map below shows the railways routes under concession and new concession projects:
*
*
Source: Infrastructure projects. ANI – Infrastructure National Agency.
* To be tendered or new private initiative
53
Railways – Primary market (2)
Private Initiative
Interoceanica rail network
This private initiative intends to communicate the coffee area with Santa Marta. Approximate
length 1,088 km..
• .
Santa Marta port connection
•
•
The objective of this project is connect Cienaga with the Santa Marta port, creating a new
access to the port. Approximate length 18 km..
Bogota (La Caro) – Belencito
•
The objective of this initiative is related to he coal and cement production. Approximate length
317 km..
Transandino rail
•
This initiative intends to connect the following cities: Buenaventura, Palmira, Ibague, Neiva,
Villavicencio and Puerto Gaitan.
Carare – Caribe
•
The objective of this project is to connect the center of Colombia with the Caribbean coast, and
improve cargo transportation to the ports, mainly coal.
Rail p rojects
Phase
Initiative
Est. investment
(USD million)
Under study - Feasibility
Under study
Under study
Private
Private
Private
Private
Private
106
195
2,955
2,018
2,727
Project
Santa Marta port connection
Bogota (La Caro) - Belencito
Transandino rail
Carare - Caribe
Interoceanic rail network
54
d. Public
transportation
Public transportation - Overview
The Massive Transportation Integrated Systems were promoted, basically in three CONPES
documents:
•
CONPES 3167 of May 23, 2002: which establishes a policy to improve urban public passenger
transportation. This document is aimed at "improving urban public passenger transportation by
the application of innovative financial tools and techniques, in order to strengthen the
decentralization process, increase productivity, and cities organization and consolidation, within
a fiscal discipline”.
•
CONPES 3260 of 15 December 2003: presents a national policy of urban and massive
transportation to "promote the implementation of Massive Transportation Integrated Systems in
major cities across the country and strengthen the institutional capacity to plan and manage
traffic and transportation in other cities, in order to increase their quality of life and productivity,
and promote integrated urban development processes within a framework of fiscal efficiency
that promotes new spaces for the private sector participation in the urban passenger
transportation development and operation".
•
The Nation and local authorities for SITM, have invested $COP 10.5 billion. The private sector
has been involved with an investment of $COP 2.7 trillion in the cities where they are in
operation, with much concern has been found that in cities where these systems are operating
there is a widespread problem in the passengers demand, which is below the initial
expectations, among other difficulties that have been presented, which will be generally
highlighted throughout this report.
Massive Transportation Integrated System s
City
Managem ent
entity
Pereira
Bucaramanga
Cali
Barranquilla
Source: World Bank
Megabus
Metrolínea
Mío
Transmetro
Lenght Operation
(km )
since
16,15 Agosto de
8,9
28 de
27,8 1 de Marzo
13,4 10 de Julio
Passenger Real dem and Real dem and
estim ated as of March,
as of June,
dem and
2011
2011
140.0
380.0
441.6
305.0
105.0
56.2
298.0
40.0
106.2
56.9
287.5
54.0
For the construction was used the figure of public works.
And for the operation are 10-year concessions, in which the concession only has responsibility for
the purchase of buses and maintenance. There are also payments collection concessions.
56
Public transportation – Primary
market
•
To improve coverage, quality, safety, operational efficiency, connectivity and accessibility of the
systems, the National Government, in conjunction with local authorities, has been
implementing, with relative success, the "Policy to improve Public Service Transportation for
Urban Passenger "which includes the reorganization of the systems, associated with integrated
transport actions with integral urban development measures and public space. In large cities,
integral systems of mass transit (SITM) are in development, while, the implementation of
strategic public transport systems (SETP) has begun in 12 cities (between 300,000 and
600,000). In smaller cities, the strategy of "Friendly Cities“ was designed, and in 9 border cities
was proposed a program of "Bi-Friendly Systems (SAB)." It is expected that the operation of the
SITM have a major impact in reducing travel times (between 20 and 35% on average) and in
reducing operating costs (around 30%).
•
In the case of Bogotá, even with the experience of the TransMilenio mass-transit system,
implemented since late 2000 and currently mobilizes 28% of trips by public transportation, the
rest of the system (mass transit) continues operation under low efficiency conditions and
service level. Mobility district police establishes the framework of the Integrated Public
Transport (SITP) solution that seeks to integrate the services, articulating the various modes of
public transportation (the collective system reformulated the massive Transmilenio BRT, the
network of bike paths, and a future Metro and suburban train
Pub lic transp ortation p rojects
Project
Phase
Initiative
(USD million)
Being structured (3) ,
Under study (4)
Public
1,010
Metro Bogota - Phase 1
Under study
Public
2,500
Tren de cercanias
Under study
Public
2,100
Being structured
Public
113
Public transportation strategic
system s (Middle cities (7) with a
population between 300.000600.000)
Intelligent traffic and
transportation control center
57
Public transportation – Primary
market (2)
Public transportation strategic systems
•
This project’s targets are middle cities with a population between 300,000 and 600,000 people.
The cities included in this group are: Armenia, Pasto, Popayan, Santa Marta, Sincelejo, Monteria
and Valledupar.
City
Pasto
Santa Marta
Valledupar
Popayan
Monteria
Sincelejo
Armenia
Phase
Being structured
Being structured
Under study
Being structured
Under study
Under study
Under study
Est. investm ent (USD m illion)
247
198
168
155
146
96
Not defined
Metro Bogota
•
This project is expected to be part of the Massive Transportation integrated system in Bogota.
The approximately length of the project is 20.35 Km.
o
Surface: 7.4 Km.
o
Semi-surface: 0.7 Km.
o
Tunnel /Underground: 12.25 Km.
o
Stations: 19.
Tren de cercanias
•
This project is important for the government, as well to the Cundinamarca government, in order
to have an adequate railway between Bogota and the nearby municipalities. The project has an
estimated length of 81.2 Km.
Intelligent traffic and transportation control center
•
Central point of management and coordination of the various Intelligent Transportation Systems
– ITS, to be established in national highways.
58
e. Ports
Ports – Overview and primary market
Colombian port structure
•
Colombian coasts on the Atlantic and Pacific oceans, and its geographical linking position
between Central and South America, give the country an advantageous position within the
Latin-American region for sea freight transport.
•
The Ministry of Transport and the Superintendence of Ports and Transport centralize all
Colombian port operations and administrative activities.
•
The main seaports are in concession and the operational efficiency has improved significantly
since the reform. However, there is still room for further improvements compared to other
international terminals.
•
New projects have been proposed in order to stimulate trade by sea, but problems persist in
depth access channels, and the interface between ports and inland modes remain a limitation
on access to terminals and inadequate logistics practices for loading and unloading, delays due
to inspections, and other security activities.
•
The table below provide additional detail on the “To be tendered” and “In development”
concessions.
Port p rojects
Charge
Cap acity million
ton/year
study
study
study
study
study
Coal
Multipurpose
Coal
Multipurpose
Coal
2
2
35
3
20
Phase
Initiative
Est. investm ent
(USD m illion)
Access to Cartagena Port
Under study
Public
96
Construction of the second
phase of the project
"Environmental system
navigation Canal del Dique"
Under study
Public
64
Buenaventura
Under study
Public
Not defined
Project
River Port / Barranquilla
Turbo (Puerto Bahia Colom bia
Puerto MPX
Delta del Rio Dagua / Valle
Puerto Brisa
Phase
Under
Under
Under
Under
Under
Dredging
Project
Dredging
The project intends to have a navigation connection between the city of Cartagena and the
Magdalena River, it also pretends to be an integral solution for the zone recovery, due to the recent
rainy emergency. The area of influence of the project is 4,633 square Km, in three regions.
60
Ports – Secondary market
Colombia is divided into three port zones: Pacific, Atlantic and Insular as follows:
Port Concessions
Year
2004
2005
2006
2007
2008
2009
2010
Nam e
Sociedad P. Puerto Mamonal/Soc.
Portuaria Buenaventura
Port Zone
Initial
investm ent
(USD m illion) Service
Cartagena
1.0
Public
Sociedad Portuaria del Dique S.A.
Cartagena
0.4
Public
Colterminales S.A. /Vopak de Colombia
S.A.
Cartagena
0.5
Public
Grupo Portuario S.A./50 Meters
Buenaventura
0.8
Public
Sociedad Portuaria de Palermo Golfo de Morrosquillo
0.2
Private
Sociedad Transporte Maritimo San
Andres
Cartagena
0.4
Public
Sociedad Portuaria Bavaria S.A.
Cartagena
7.1
Private
Sociedad Portuaria Oleafinas y Derivados
Cartagena
0.8
Public
Terminal de Contenedores de
Buenaventura TCBUEN
Buenaventura
34.9
Public
Sociedad Portuaria Industrial Aguadulce
Buenaventura
180.1
Public
Terminal Petrolero de Coveñas/Ecopetrol Golfo de Morrosquillo
3.0
Private
Sociedad Portuaria de la Zona Atlántica
San Andrés
0.1
Private
Terminal de Contenedores de Cartagena
CONTECAR
Cartagena
156.6
Public
Grupo Portuario S.A. /Lotes A1 A2
Buenaventura
0.6
Public
Sociedad Portuaria Punta de las Vacas
S.A.
Turbo
0.0
Public
Sociedad Portuaria de la Peninsula S.A.
Guajira
1.3
Public
Sociedad Zona Franca Argos S.A.
Cartagena
15.8
Private
Cartagena
32.4
Public
Santa Marta
20.2
Private
Sociedad Portuaria Regional Cartagena Muelle Nueve
Sociedad Ecopetrol S.A. Pozos
Colorados
61
f. Fluvial
Fluvial – Overview and primary market
The Magdalena River is Colombia’s longest most important river due to its length and the proximity
to several important commercial nodes within the country. This fluvial system has been generally
underused but plays an important role to support the isolated communities of the Magdalena Valley,
the Amazon, the Orinoco and the Pacific coast, where fluvial transportation, other than air, is the
general mean of access.
In relation to goods transportation, of a potential total network of 18,000 Km, nearly 7,000 Km of
waterways have permanent navigation. The Magdalena River (1,188 Km) mobilized most of the
cargo mobilized through water. The Atrato River basin (1,075 Km) facilitates the communication of
the Pacific with the Caribbean. In Colombia in general, infrastructure is weak and the absence of
multimodality limits its use and causes the underuse of waterways such as Putumayo and Meta.
The basins of the Orinoco and Amazon (4,800 Km of major navigation) located on the east and
south are the only ways of communication for many isolated communities; these rivers allow
international communication with Venezuela, Brazil, Peru and Ecuador.
Fluvial p rojects
Phase
Initiative
Est. investment
(USD million)
In tender process
Under study
Under study
Under study
Public
Public
Public
Public
630
63
18
34
Project
Magdalena corridor
Orinoco corridor
Am azonas corridor
Pacific esteros
Magdalena River navigability
This project intends the adequacy of the navigable channel of the river and the corresponding port
infrastructure. The project has three phases:
1. Navigability of 4.5 feet: 200 Km
2. Navigability of 6 feet: 300 Km
3. Navigability of 9 feet: 920 Km.
Phase
Type of initiative
630
In tener
Public
63
h. Social
Social – Overview and primary market
•
With the recent enforcing of Law 1508 of 2012, where the implementation of Public Private
Partnerships was introduced, new opportunities to attract private investment into new sectors
such as Health, Education, Prisons, Defense, Agriculture, Urban Development , Culture, Public
Buildings, among others, arose. It is important to note that these sectors that have not been
developed in Colombia.
Social projects
Phase
Initiative
Est. investm ent
(USD m illion)
Being structured
Public
25
Being structured
Public
99
Fiscalia General de la Nacion
Being structured
Public
75
CAN urban renew al
Prisons (5 prisons)
Air force flight simulators
Being structured
Being structured
Under study
Public
Public
Public
Not defined
150
26
Project
Integral centers for early childhood
attention
Superintendencia Notariado and
Registro y Consejo Superior de la
Judicatura Headquarters
•
The investment in prisons projects are in the following prisons:
o
Popayan (Cauca)
o
Picota (Bogota)
o
Puerto Triunfo (Antioquia)
o
Giron (Santander)
o
Regional prison in the “Eje Cafetero”
o
“Region Caribe” prison
65
Social – Primary market (2)
Integral centers for early childhood attention
•
This project intends the construction, maintenance and operation of childhood centers through
PPP’s. The tender process is expected to be opened in the second quarter of 2013.
Phase
Type of initiative
25
Being structured
Public
Superintendencia Notariado and Registro y Consejo Superior de la Judicatura Headquarters
•
The objective of this initiative is the construction, management, operation and maintenance of
the infrastructure and related services of the Superintendencia. The tender process is expected
to be opened in the first quarter of 2013.
Phase
Type of initiative
99
Being structured
Public
Fiscalia General de la Nacion
•
The project objective is the construction, management, operation and maintenance of the
Fiscalia offices in Cali. The tender process is expected to be opened in the second quarter of
2013.
Phase
Type of initiative
75
Being structured
Public
CAN urban renewal
•
This initiative intends the physical and functional renewal of the Centro Administrativo Nacional,
through a PPP scheme.
Phase
Type of initiative
To be defined
Being structured
Public
Prisons - Popayán
•
The objective of this project is the private participation in the construction, maintenance,
equipment, operation and provision of services associated to feeding, laundry, pest control and
social reinsertion. Currently, there is a technical cooperation agreement with the Comunidad
Andina de Fomento (CAF). The tender process is expected to be opened in the fourth quarter of
2013.
Phase
Type of initiative
150
Being structured
Public
Air force flight simulators
•
This project intends the acquisition, operation and maintenance of a flight simulator for the air
force training.
Phase
Type of initiative
26
Under study
Public
66
g. Energy
Energy - Overview
•
The energy sector in Colombia has evolved significantly over the past 20 years and today it is an
efficient sector with world class practices. This trend will continue in the upcoming decades,
due to the growth of foreign direct investment in Colombia, as well as the growth of Colombian
multinationals abroad.
•
The Colombian energy sector currently has a public-private agenda aimed at a world-class
industry, ensuring the country’s supply of electricity in the medium and long term and the
interest of turning Colombia into a major player in regional energy integration .
•
Some of the reasons to invest in Colombia’s energy sector are:
o
Excellent availability of natural resources for power generation:

Colombia has an average annual rainfall equal to three times the world’s average and
twice the South America average.

90,000 MW hydropower potential, of which only is being used between 11% and 12%.

212 gas fields with a production of 967 million cubic feet per day.

Coal reserves of approximately 9,244 million tonnes.

Oil reserves secured until 2019 with a production of 896,000 barrels per day.

High solar and wind potential in the Atlantic Coast and in the eastern plains.

High potential for electricity exports of goods and related services: international
interconnection networks in operation with an output of 621 MW, and network
interconnection between Colombia and Panama under construction with capacity of
600 MW. In addition, export expectations to Dominican Republic and Puerto Rico via
submarine cable.
o
Legal and regulatory stability in the Colombian energy industry: stable law, with over 15
years of application and proven success in regulating the energy sector.
o
Growing trend of energy consumption in Colombia: annual demand grew around 3% since
1995, concentrated mostly in the industrial sector.
Energy p rojects
Project
Share sales of power generator ISAGEN
Share sales of power com panies
(Meta, Huila, Neiva y Caqueta)
Share sales of power generators
(Gecelca and Urra)
Hidroarm a
Term ocesar (Coal-electric)
Term o Yariguies-Term o Lum biTerm o Upar
Liquefied Natural Gas im port and
export term inal
Phase
Initiative
Est. investment
(USD million)
Being structured
Public
2,600
Being structured
Public
Not defined
Being structured
Public
Not defined
Being structured
Being structured
Public
Public
366
Not defined
Being structured
Public
Not defined
Under study
Public
500
Source: Ministry of Mines and Energy
68
Energy – Overview (2)
Colombia’s energy sector became a free market in 1994 in all stages of the electric energy
business (generation, transmission, distribution and retail). Colombia established the energy
exchange to increase competitiveness among players for the benefit of the end user.
In Colombia the difference between transmission and distribution is explained by the tension of
the electricity. As such, transmission is that which is equal or above 220 kV (bulk) and distribution
relates to that below 220 kV.
The Colombian government implemented a free market policy (law 142 and 143 of 1994) with the
following objectives:
•
Increase competitiveness among the generators using two mechanisms: establish long term
contracts between producers, large consumers, and retailers; and the energy stock exchange
in which producers (supply) and retailers (demand) participate;
•
Allow all transmission and distribution companies to interconnect in order to create a larger
network;
•
Entice private companies and investors to invest, in order to improve the level of technology
and innovation in the energy industry;
•
Release the public budget from making investments in the energy sector;
•
Reduce the loss of profits from energy exports by increasing the capacity and the risk of
reliability from hydroelectric resources which compose 75% of the generators;
•
Reduce the energy loss through constant renovation of the distribution network; and
•
Increase energy coverage in rural and urban areas.
As a result of the policies established in 1994, Colombia is now a mature energy market with
considerable energy export opportunities by 2010 had 48 generators, 11 transmission companies,
30 distribution companies and 85 energy retailers.
69
Energy - Primary market
Share sales of power generators (Gecelca and Urra)
The government intends to dispose of these power generators. Actually the government owns
56%
Share sales of power generators (Gecelca and Urra)
The government intends to dispose of these two power generators. Actually the government owns
99% of Gecelca and 97.3% of Urra.
Gecelca is the thermoelectric with higher thermal capacity installed with 33%. Urra has 4.33% of
the hydraulic generation capacity.
Share sales of power companies (Meta, Huila and Caqueta)
This project intends to sell the Nation share participation of 3 energy companies. The Nation owns
the following percentages:
1- Huila: 83%
2- Meta: 55.7%
3- Caqueta: 72.3%
El Neme, Fonse, Cabrera, Termocesar and Termo Yariguies-Termo Lumbi-Termo Upar
Project
Termocesar
Termo Yariguies
Termo Lumbi
Termo Upar
Departm ent
Cesar
Location
Tamalameque
Santander Barrancabermeja
Resource
Coal
Simple gas
combined
Capacity
300 MW
225 MW
each one
Liquefied Natural Gas import and export terminal
Build a terminal before 2015 to guarantee gas supply. The estimated investment is USD 500 million.
70
i. Water and
sewerage
Water and sewerage - Overview
•
The water and sewerage services in Colombia are provided through public or private specialized
operators and/or directly through the local authority or municipal companies.
o
Public or private operators: provide the service to 90% of the population, mainly in
municipalities with a population greater than 10,000 people.
o
Local authorities or municipal companies: municipalities with less than 10,000 people.
o
In rural areas, the service is provided through 4,500 users associations.
•
The water and sewerage coverage in urban areas is 97% and 92% respectively, for 2015 is
expected to reach 99% and 97%.
•
In rural areas the water and sewerage coverage is 72% and 69%, respectively, for 2015 is
expected to reach 81% and 75%.
•
Only 25% of the wastewater is treated, this brings an important environmental impact and
additional costs for the aqueducts that use this resources.
•
80% of the people in the country has potable water, mainly in municipalities with more than
20,000 people.
Water and sew erage projects
Project
Waterw aste treatment plants
Cañaveralejo
Canoas
Salitre
Bello
-
Bucaramanga dam
Phase
Initiative
Est. Investm ent
USD m illion
Under study
Public
100
Under study
Public
1,105
Under study
Public
487
Under study
Public
582
Being structured
Public
102
72
j. Pipelines
Pipelines - Overview
•
Ecopetrol is the responsible of the oil transportation and refining in Colombia. In some cases
Ecopetrol is the owner and in other cases, Ecopetrol has the majority of the participation.
Ecopetrol has created CENIT a new company focused on oil transportation.
Source: ECOPETROL
Current oil pipelines
•
Caño Limon – Coveñas: used for oil transportation from Caño Limon, Arauca to Coveñas,
Cordoba. Length: 770 Km.
•
Alto Magdalena: oil transportation from the superior valley of the Magdalena (Dina, Huila) to
Vasconia, Antioquia. Ecopetrol owns 49%, of the pipeline.
•
OCENSA: transports oil from Cusiana, Casanare to Coveñas, Cordoba. Length 790 Km.
•
Colombia: connects the Vasconia station with Coveñas. Length: 481 Km.
•
Central de los Llanos: used for oil transportation in the east valley of Colombia.
Opportunities
•
Pacific oil pipeline project: 450 TBPD capacity, 1,400 Km of oil pipeline to transport the product
to be commercialized through the pacific coast.
•
Open rounds of National Hydrocarbons Agency for exploration and exploitation contracts: 205
new contracts, drilling of 570 new exploratory wells A3 type.
•
OCENSA: project seeking to connect the Piedemonte Llanero (Meta) to the marine terminal in
Coveñas, moving 100 thousand barrels per day.
•
The Colombian oil duct (ODC) which will increase current capacity from 186 thousand to 210
thousand barrels per day.
•
The Transandean pipeline (OTA) which will increase current capacity form 50 thousand to 90
thousand barrels per day.
74
k. Mining
Mining - Overview
The mining market
The mining sector in Colombia is classified as primary market and secondary market. The first one
is granted by the newly appointed National Mining Agency (ANM) which will be in place from June
2012. The agency’s role is to grant mining licenses to explore and produce, in exchange for
royalties and other benefits to the communities the mines interact with. In the past year, the
granting of licenses has been withheld until the agency takes on the role of regulator. The
secondary market is for those mining operators that have been granted a mining license but are
interested to divest, sell part of their ownership or farm out completely.
Colombia’s most important challenges to exploration and productions are those related with
environmental and community licenses.
Mining production forecast
Coal (tons millions)
Nickel (tons '000)
Gold (tons)
Construction materials (tons '000)
2010
92.0
50.2
53.3
10.7
2011
96.0
36.7
55.7
11.2
2012
107.0
51.1
62.4
11.7
2013
119.0
50.6
69.2
12.4
2014
124.0
50.7
72.0
12.8
2015
128.0
50.8
74.6
13.4
2016
138.0
50.7
80.2
14.1
2017
144.0
50.7
83.9
14.5
2018
150.0
50.7
87.4
15.0
2019
152.0
50.7
88.5
15.7
Source: Colombian Ministry of Mines and Energy, 2011
6.000
5,0%
5.000
4,0%
4.000
3,0%
3.000
2,0%
2.000
2011
2010
2009
2008
0,0%
2007
0
2006
1,0%
2005
1.000
2004
Licensed hectares ('000)
Colombia's mining licensed area
Licensed (hectares)
Percentage of the national territory
In 2011, all mining licenses were withheld, and as a result the licensed area did not increase.
76
5. Infrastructure
financing in
Colombia
Financing market in Colombia
How is infrastructure financed in Colombia?
There are various financing sources available in Colombia, including:





Local banks (including international banks with local operations);
Private pension fund administrators;
Insurance companies;
New governmental funds (debt and equity);
Mutual funds.
Additionally, for financing in dollars, there are:



Multilateral entities;
International banks; and
International corporations/funds (debt and equity).
Traditionally in Colombia, the main modality for the private participation in infrastructure
projects has been the concession contracts. This type of contracts have the disadvantage that
the investors are mainly construction firms whose objective is basically the physical
development of the project, and do not specialize in the operation.
This scheme has encouraged infrastructure financing to be mostly provided by local banks.
Some of the reasons for this are:

The banks are more accustomed to the risks that are involved in an
infrastructure project (i.e. Construction risks)

Banks are accustomed to provide lending based on the balance sheet of the
entity requesting it and not on the project in which it will be used.

The banks have in their financial models different mechanisms in order to
identify associated risks in early stages of the projects.

In the case in which the projects require changes in the financing structure, the
banks present simpler and more efficient mechanisms for the renegotiation of
the loans when compared to the capital markets.
However, the capital markets offer some advantages over the more traditional banking loans
such as liquidity, lower interest rates and long run terms for the investment.
In Colombia, the range of application of PPP schemes cover different sectors, ranging from
productive infrastructure - transport, electricity and water supply - up to social infrastructure education and health – excluding telecommunications, mining and port terminals. In addition to
the various sectors, PPPs can be developed through numerous variations and different
contractual arrangements that include contracts for operation and maintenance, concessions
and more complex schemes which incorporate different levels of responsibilities for those
who provide the operation and maintenance of the goods and/or services. The PPP
mechanism in its most pure concept is one of these variations, and it is the current focus for
the upcoming infrastructure projects in the country. The pure PPP scheme, unlike the standard
concession contract, places greater emphasis on the improvement of the quality services
provided to the end users.
78
Financing market in Colombia (2)
Infrastructure’s Capital Markets Financing
The magnitude and volume of infrastructure projects to be executed in upcoming years,
coupled with near-to-regulatory-limits exposure in the local banking system and traditional
project finance banks’ shrinking appetite, make a capital market financing strategy a must.
Even though an official program of infrastructure bonds has yet to be officially launched by the
National Infrastructure Agency (“ANI”), the agency has announced it is designing a financial
instrument that may be applied to all infrastructure projects in the country. They have also
expressed its intent to establish homogenous guidelines for financing. Preliminary ideas
involve financial structures that contemplate the securitization of construction milestones,
referred to in the PPP Law as functional units. The government would award these units with
a minimum value and be responsible for certifying viability and service quality standards.
Some of the ways to finance infrastructure projects within the capital market are:

Ordinary bond indexed to inflation. Most likely that the design of the
infrastructure bonds would be ready in September, 2013 according to ANI. The
agency has also mentioned that the pension funds are able to invest up to COP
$25 billion in construction (more than half of what the fourth generation
concessions program has budgeted COP$ 44billones).

Future flows securitizations,

BOCEAS issuance, and

Stocks issuance.
Currently, there are approximately 53.693 pension funds managing assets by approximately
COP $ 98 billion in contrast with 5.313 insurance companies operating.
Recent bond issuance experiences

Two of the three issuances in 2010 demonstrated exceptional level demand.

Davivienda (one of the largest Banks in the country by assets), placed over COP
$ 419 million in preferential shares featured by an oversubscribed by more than
COP 5 $ billion (equal to 13.02x of the awarded amount).

Conconcreto (a developer) placed more than COP $ 94,000 million in ordinary
shares. There was an oversubscribed by more than COP $ 1.1 trillion,
equivalent to 12.7x of the awarded amount.
Source: Bancolombia investment bank
To highlight in this sort of financing

Colombian institutional investors are collecting larger amounts than required
investment.

Infrastructure projects are an ideal asset class for institutional investors.

Financial guarantees are the key to access to this market in Colombia.

Only certain infrastructure projects qualify for a guarantee.

The structure of the underlying risk is very important.

Financing through Bonds usually reaches higher leverage than bank financing
given its long-term fixed rate, which translates into lower capital requirements
and increases the IRR of projects.
79
The primary Colombian financial
groups involved in infrastructure
projects are:
Typical financing structure in Colombia
Government
 Bancolombia Group
 AVAL Group
 Davivienda Group
Users
Services
Executing
entity
Also there are multiple private
equity funds focused in Colombia,
such as:
 Ashmore
Special purpose
vehicle
 Brookfield
 Darby
Dividends payments
 Nexus
Stockholders
Finally, there are also various
multilateral entities actively
participating in infrastructure,
including:
 International Finance Corporation
 Inter-american Development
Bank (IDB)
Cession of the
economic rights of
the contract
Funds
Fiduciary
Creditors
Operation and
maintenance
contract
Funds
Interest payments
Construction
Payments
(IFC)
 World Bank
Auditing
Control and
supervision
Construction
contract
O&M
Payments
Constructor
Operator
 Loans from Banco de desarrollo
Other
Payments
de América latina (CAF)
Lands
80
It must be highlighted that the Colombian government is enhancing its legal framework to
enable additional forms of infrastructure financing in two fronts:
Capital markets
Pension funds, which historically have not been familiar with construction risks, have sufficient
resources to finance these projects and recently have also shown interest in doing so,
however, there are no legal instruments for them to do so.
As a result, the National Infrastructure Agency (ANI) is analyzing the design of bonds by which
private pension fund administrators (AFP) could actively finance the construction of road
works. According to ANI, these bonds will have a 25 year maturity with returns similar to that
of standard public debt (TES) and will be tradable through the MILA (Integrated Latin American
exchange, currently composed of Chile, Colombian and Perú). These bonds and bond
regulation are expected to be in place the end of 2012.
Leasing
Article 89 of the law 223 empowers developers building in the transportation,
telecommunications, energy, water and basic sanitation sectors to consider all leasing
payments for the project as an expense, resulting in a tax benefit that encourages the
development of the country's infrastructure. Additionally, some financial entities are
developing a new strategy to encourage the infrastructure private sectors to use these kind of
vehicles.
Lenders and conditions
On personal interviews with Colombia’s main lenders (Bancolombia and Corficolombiana) we
established that infrastructure projects have generally been financed in Colombia with
syndicated loans of which the main providers are but not limited to: Banco de Bogotá, Banco
de Occidente, Banco Popular, Banco AV Villas, Bancolombia, Davivienda and Helm.
Conditions on these loans vary depending on the project, macroeconomic factors, project risk
and amount to be lent. However, a maturity between 7-9 years in addition to a standard two
year grace period is common with an average interest established at consumer price index +
6%.
81
6 . KPMG Global
infrastructure,
awards and
recognition
KPMG Global Infrastructure
KPMG is one of the world’s leading companies in financial advisory concerning financing and
capital structure for infrastructure projects. KPMG has established a global infrastructure team
specialized in transactions that include both the public and the private sectors. Within a
general framework, our business is divided approximately 50/50 between advisory services to
public entities and private companies. Our offices are located in the most active financial
markets including the United States, Canada, the United Kingdom, Portugal, France, Spain, the
Netherlands and Australia; also we have a great presence in Latin America, mainly Mexico,
Brazil, Chile, Colombia and Peru.
Our Global Infrastructure team has over 500 professionals located strategically around the
world with experience in the financial, banking and public sectors. This figure amounts to
3,000 when including other areas of KPMG that also participate in the infrastructure projects.
In this way, we provide with appropriate solutions in various contexts from a global
perspective and structure and finance projects using our global knowledge for each particular
situation.
Although we experienced a recent financial crisis, KPMG successfully closed transactions of
great importance during this period. Our global network enables us to keep a constant
communication allowing us to capture the latest trends in the market while they occur. At the
same time, our teams are engaged in covering the local market information depending on the
location where each specialist is settled.
The basis of KPMG professional excellence is our professionals and the experience acquired in
infrastructure project financing. Such experience spans over 25 years of services among
various sectors, geographies and contexts.
Our involvement includes highway projects, bridges, railway, airports, ports, water supply and
sanitation, education, health, information technology, defense, power and natural resources.
Currently, our KPMG teams in Latin America are providing advisory in pre-feasibility analysis,
market analysis, procurement and financing, financial structuring and private initiatives, due
diligence and mergers and acquisition services as well as capital raising for funds in various
projects.
We perceive our role as financial advisor from a multifaceted perspective that covers
assistance in preparing business plans based on the information from various additional
advisors that may be contracted, and commercial arrangements that are bankable; as well as
on the assistance in various types of due diligence, management of various available sources
of financing, and the development of financial models and structures of eventual financing.
We do not limit our role within the context of our capacities, but we look forward to working
with our clients to develop the necessary solutions for each project in particular, including
financial close.
Accordingly, in several cases, our services cover from the generation of a Business Plan to the
creation of special-purposes vehicles, serving as a pass-through conduit to lenders for the
evaluation of the various commercial and financial contracts. We seek to anticipate market
requirements and directly manage the contracting process to ensure the success of our
projects.
In addition to the development of the Business Plan, as an independent adviser, KPMG also
considers all available financing options, without limitation to internal policies or third party
interests.
KPMG has relationships with all the relevant financing sources and will consider each of these
alternatives within the context of the project in order to recommend a financing strategy based
on our knowledge of each of these entities.
83
KPMG Global Infrastructure (2)
Our role as independent advisors
Large experience in Infrastructure Projects and
Project Finance in general
Specialists in the sector
Relationships with financial entities
Independent advisory
- The Global Infrastructure department members
have participated in various transactions
throughout their professional experience.
- Likewise, the proposed team has participated in
various financing close under the modality of
Project Finance, contributing with a vast
knowledge of structures that are commonly used
and particular conditions included in these
financing contracts.
- The Global Infrastructure team has participated
in various infrastructure projects both nationwide and internationally.
- KPMG has a vast experience in advisory both to
public sectors as well as to private consortia in
infrastructure projects.
- KPMG has a close relationship with various
Colombian and foreign financial entities,
multilaterals, insurance companies and
infrastructure funds and pension funds in
Colombia.
- KPMG is not associated to any financial entity;
therefore we are in a position to offer
independent advisory to our clients to searching
for the most appropriate structure of financing
and the most favorable conditions that the
market can offer.
- Our independence allows our clients to have the
most competitive financing solutions.
Large experience in the banking sector
- The team proposed for this engagement has a
vast experience in the banking sector,
structured financing and financial engineering.
This allows us to reinforce our capacity to render
independent advisory knowing from first hand
the internal procedures related to “bankability” of
the project, the finance structures used by
financial entities and how they perceive the
project risks.
- Our knowledge and experience with financial
entities place us in a favorable position for the
negotiation of terms and conditions in relation to
the financing sources.
Experience in Modeling
- The Global Infrastructure team has prepared
various financial economic models under the
highest market quality standards. We are able to
create an analysis tool that allows our clients to
assess different financing sources, and conduct
sensitivity analysis that gives confidence to their
financial institutions and internal committees; all
this with a high level of flexibility and detail.
84
KPMG Global Infrastructure (3)
KPMG’s Global Infrastructure business is involved in many of the exciting changes that are
happening in every corner of the world. We have been awarded for the strength and depth of
our business and seek to share the insights we are gaining
Insight – The Global Infrastructure Magazine
Insight is a semi-annual magazine that provides a broad scope of local, regional and global perspectives on
many of the key issues facing today's global infrastructure industry.
Infrastructure 100: World Cities Edition
(Second Edition)
Insight: Urbanization – Second Edition
Infrastructure 100: World Cities Edition provides
insight into the infrastructure projects that make
great cities, with a particular focus on the
innovations that make them ‘Cities of the Future’ –
places where people want to live and do business.
The second edition of Insight explores the
infrastructure challenges currently being
faced by cities, and includes feature
interviews with key city leaders and private
sector executives from around the world to
shed light on how they are responding to the
infrastructure challenge.
Insight: Infrastructure Investment – Bridging
the Gap Third Edition
Insight: Infrastructure 2050 – First
Edition
In the newest edition of Insight magazine, we
explore the complex world of infrastructure
finance and funding and examine some of the key
challenges and opportunities facing the market.
This edition features over 20 articles that provide
key insights into a number of critical topics.
The first edition of Insight explores one
of the great universal challenges of the
21st Century – infrastructure. In this
issue, our professionals share insights
from global experiences, across many
sectors, and throughout the
infrastructure lifecycle.
Recent awards and recognitions
KPMG Global Infrastructure Projects Group – Awards
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2009 European Healthcare Deal of the Year – Braga Hospital
2008 European PPP Deal of the Year – FSTA / Air Tanker Finance Ltd
2008 North America Project Bond Deal of the Year – Capital Beltway
2008 North America Social Infrastructure Deal of the Year – Alberta Schools
2008 North America PPP Deal of the Year – Montreal A30
2008 North America Deal of the Year – Virginia Capital Beltway
2008 North America Transport Deal of the Year – Texas State Highway 130
2008 Latin American Acquisition Deal of the Year – Aerodom
2007 European Transport (Roads) Deal of the Year – Ostregion A5, Austria
2007 European Transport (Light Rail) Deal of the Year – Milan Metro 5 Underground PPP
2007 EMA Leisure Deal of the Year – Dublin National Conference Centre, Ireland
2007 Middle East Islamic Infrastructure Deal of the Year – Hajj Terminal: Islamic BTO
2006 North American PPP Deal of the Year – Golden Ears Bridge
2006 European PPP Deal of the Year – Limerick Tunnel Deal
2010 PPP Financial advisor of the year
2008 Transport Deal of the Year Capital Beltway I-495 Virginia Hot Lanes
2008 PPP Deal of the Year FSTA
2008 Financial Advisor of the Year – PPP
2007 Transport Financial Adviser of the Year
2007 PPP Deal of the Year – Dublin National Conference Centre, Ireland
2006 PPP Financial Adviser of the Year
2006 Transportation and Infrastructure Financial Adviser of the Year
2006 Deal of the Year Golden Ears Bridge
2008 Europe PPP Deal of the Year FSTA
2008 Europe Power Deal of the Year Sloe Centrale
2008 North America Deal of the Year Autoroute A30
2007 EMEA Environmental Deal of the Year – Lancashire Waste PFI
2006 EMEA Power Deal of the Year – Falck Deal
2006 North America deal of the year - Golden Ears Bridge
2009 Best Financial Adviser
2009 Best International Project Capital Beltway (Virginia i-495 Route) HOT Lanes
2009 Grand Prix MFTS
2009 Best Defence Project MFTS
2008 Winner of the Gold Award for Project Financing, Canadian Council for PPP National
Awards for Excellence. A30 Montreal
2008 Winner of the Silver Award for Infrastructure, Canadian Council for PPP National
Awards for Excellence The Trans-Canada Highway Project, (New Brunswick)
2008 PPP Financial Adviser of the year - Magazine des Affaires awarded KPMG Corporate
Finance as the No 1 PPP Financial Adviser in France (private side)

2010 Financial Advisor of the Year

2011 Corporate Financier
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Corporate Finance Deal of the Year 2011 (North East)
Corporate Finance Deal of the Year 2011 (South West)
Transaction Services Team of the Year 2010 (North West)
Corporate Finance Team of the Year 2010 (North West)
Corporate Finance Team of the Year 2010 (Yorkshire)
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86
European Mid-Market
Advisor of the year
Best Corporate Finance team of the Year
2006 2007 2008 2009 2010
Recent awards and recognitions (2)
1. Morgan Stanley
2. Goldman Sachs & Co
3. KPMG
4. JP Morgan
5. Lazard
6. Rothschild
7. Credit Suisse
8. Pricewaterhousecoopers
9. UBS
10. Deloitte
329
323
286
272
267
253
243
232
231
221
1. KPMG
2. JP Morgan
4. Pricewaterhousecoopers
5. Morgan Stanley
6. Credit Suisse
7. Rothschild
8. UBS
9. BoA Merrill Lynch
10. Deutsche Bank AG
260
250
240
229
222
210
206
203
198
192
1. KPMG
2. JP Morgan
4. Credit Suisse
5. Citi
6. Merrill Lynch
7. UBS
8. Morgan Stanley
9. PricewaterhouseCoopers
10. Rothschild
390
357
316
315
314
307
306
298
284
269
1. Citi
2. KPMG
4. Morgan Stanley
5. UBS
6. JP Morgan
7. Credit Suisse
9. Rothschild
10. Merrill Lynch
457
450
418
395
392
361
343
335
329
282
1. KPMG
4. JP Morgan
5. Morgan Stanley
6. Citigroup
7. UBS
8. Rothschild
9. Credit Suisse
10. Merrill Lynch
441
378
359
342
333
330
329
317
276
261
Source: Thomson Reuters SDC,
17 January 2011, completed deals
Full to each Advisor
Source: Thomson Reuters SDC, 4
January 2010, Completed deals
Full to each Advisor
Awarded by Thomson
Financial’s Acquisitions
Monthly for outstanding
M&A financial advisory
work on mid-market deals
across Europe in 2008
Source: Thomsom Financial SDC,
3 January 2008 Worldwide
Completed Advisor Ranking
(Target or Adquiror)
Source: Thomsom Financial SDC,
Worldwide Completed Advisor
Ranking (Target or Adquiror)
87
7. Colombian
experience,
CVs and contact
Presence
Who are we?
KPMG Advisory Services Ltda., provides benefits of an international association, with the
support of a practice of almost 60 years of experience in the local market, integrating
innovative working methods, creating new services to benefit our diverse and broad customer
base.
In recent years we have consolidated in Colombia's continuing strong development, with a
high rate of growth and market share, integrating top-level professional staff and the
introduction of best practices.
The countries in Latin America in which
KPMG operates are:
KPMG in Colombia
 More than 800 professionals
 Over 50 years of experience
 30 Partners
Medellin
 86 Directors & Managers
Bogota
 3 Offices: Bogota, Medellin
and Cali
Cali
 Over 850 clients
A strong presence arounde the world and latin america
The KPMG International Network operates through independent
professional firms with permanent establishments in the major countries of
Latin America.
South America
Central America
Colombia
Panama
Argentina
Nicaragua
Brazil
Costa Rica
Uruguay
Honduras
Peru
El Salvador
Chile
Guatemala
Ecuador
Dominican Rep.
Venezuela
Mexico
89
Recent related infrastructure
experience in Colombia
DP World Ltd.
Transaction Services
Southern Cross
Latin America
APM Terminals
Panamá S.A.
Financial due diligence assistance in
the potential acquisition of five
confidential Targets in Colombia
High level Financial due diligence
assistance in the potential
acquisition of five confidential
Targets in Colombia and Costa Rica
Ports
Ongoing
Ports
August 2012
Ports
May 2012
MPX Colombia
S.A.
CSAV
Inversiones
Navieras S.A.
Swissport
International Ltd.
Corporate Finance
Project valuation of Colombian
infrastructure
Transportation
2012
High level Financial due diligence
assistance in the potential
acquisition of two confidential
Targets in Colombia
ISAGEN
Goldman, Sachs
& Co.
Financial due diligence assistance in
the potential acquisition of a Chilean
company.
Financial due diligence assistance or
the Vale acquisition
Energy and Natural Resources
September 2012
2012
Acon
Investments
Sterlite
Industries LTD
Due diligence assistance on the
acquisition of an asset in Colombia
Due diligence assistance of a
confidential target in Colombia
Financial due diligence assistance
for the acquisition of Grupo Sala
Financial due diligence assistance
for the acquisition of Drummond
Company Inc. Colombia
Transportation
2012
Financial Services
Waste Management
2011
2011
experience in Colombia (2)
Brookfield
Colombia
Infrastructure
Private Equity
Fund
Due diligence assistance on the
purchase of Boyaca Energy
Company S.A. E.S.P (EBSA)
Dueños de Isagen
Corporate Finance
Comercializadora
de Carbones y
Coques de
Colombia Ltda.
TribeCapital
Partners S.A
ITOCHU
Corporation
Corporate Finance
Strategic and financial assistance for
a Management Buy Out
Financial structuring
Due diligence assistance for the
Termocandelaria SCA ESP
acquisition
Energy and Natural resources
2010
Energy and natural
resources
2010
Energy and Natural
Resources
2010
Vale S.A.
Sinochem
Petroleum LTD
Vale S.A.
acquisition of Prodeco and Fenoco
group
acquisition of CENS, EBSA, ESSA
Energy, natural resources and
transportation
2010
2009
2011
Due diligence assistance for
the Drummond Company Inc.
acquisition in Colombia
the acquisition of BP
Exploration Company assets
in Colombia
Energy and natural resources
2010
Energy and natural resources
2010
Banca de
Inversion
Bancolombia
the Drummond Company Inc.
acquisition in Colombia
2010
Compañia
Colombiana de
Inversiones S.A.
acquisition of EPSA S.A. E.S.P and
CETSA S.A. E.S.P
2009
Shell Colombia
Corporate Finance
Financial advice in the capital asset
reduction for Shell Colombia S.A.
2008
Banca de
Inversión
Bancolombia
Acquisition advice of Energia de
Pereira S.A.
2008
San Antonio
International
Pacific Rubiales
Energy
Corporate Finance &
Corporate Finance &
Latinamerican
Infrastructure
Services LLP
Due diligence advice and acquisition
structuring of Petrotesting Drilling
S.A. and Colregistros S.A.
2008
Petrotransandina
Sucursal
Colombia
Due diligence advice in the
acquisition of Gomez Cajiao y
Asociados S.A. and Production
Testing Services Colombia Ltda
2008
Due diligence advice in Repsol YPF
assets in Argentina
2008
Terminal de
Transporte de
Bogota
Corporate Finance
Terminal de Transportes de Bogotá
S.A. valuation
Transport
2008
Due diligence advice in Centromin
S.A. acquisition
San Antonio
International
Hydrocarbon Services Ltda.
acquisition
2008
2008
Third Eye Capital
Pacific Rubiales
Energy
Due diligence advice for the
acquisition of Grupo Monterrey
2008
acquisition of Petrotesting Colombia
S.A. and Southeast Investment
Corporation
2008
GPS Consultores
Corporate Finance
Strategic advice for the participation
in the concession tender for the
transit registry operation and
implementation
Transport
2006
ICBF
Corporate Finance
Strategic and financial assistance for
the food production plant for the
national system food distribution
Government
2007
UESP/City of
Bogota
Indura S.A
Corporate Finance
Strategic and financial advice for the
structuring of a waste management
and recycle system
Government
2006
PNUD / Aerocivil
Corporate Finance
Strategic and financial advice for the
El Dorado airport structuring
Government
2007
Due diligence advice for the Gases
Industriales de Colombia S.A.
acquisition
2008
Interconexion
Electrica
Corporate Finance
Confidential assets valuation
2007
Stratus Oil & Gas
Due diligence assistance to Stratus
Oil & Gas in the acquisition of Kappa
Energy Holdings Limited, Kappa
Energy Holdings II Limited, Kappa
Energy Colombia Ltd y Great North
Energy Ltd.
Stratus Oil & Gas
Due diligence assistance in the
Hupecol acquisition
2008
2008
Electricaribe/
Electrocosta
Empresa de
Energia de
Quindio
Corporate Finance
Corporate Finance
Synergy valuation to merge the two
companies
2007
Transaction valuation and structuring
Energy and Natural
resources
2007
Camilo Gonzalez – KPMG Colombia
Background
•
Camilo is a Bachelor of Economics and Industrial Management from Purdue
University and a Master in Business Administration from Loyola University.
•
Camilo joined KPMG in 2002 and has led multiple projects in both Corporate
Finance and Transaction Services in South, Central and North America.
•
Prior to joining KPMG, he was working with an investment bank, as a founding
Partner.
Professional and Industry Experience

Camilo Gonzalez
 Financial and accounting due diligence of more than 60 companies on the
Partner
electric energy sector, (generation, transmission, commercialization and
distribution), mining (exploration and production), pharmaceutical, financial
services, communications, security, construction, automotive, safety
solutions, food, agrochemical and business sectors.
KPMG Colombia
Phone +57 1 618 8180
Fax +57 1 623 3380
Mobile +57 315 607 4058
[email protected]
 Support on M&A processes to more than seven companies in the energy,
mining, automotive, financial services, pharmaceutical and food sectors.
 Valuation and financial advisory to more than 25 companies of air,
Function and Specialization
Camilo is the lead partner in the
Transactions & Restructuring
services in the Colombia KPMG
practice, specializes in providing
corporate finance and due diligence
services.
construction, non alcoholic drinks, technology and solid waste management,
pharmaceutics, consumer markets, transport and banking sectors.
 Structure of infrastructure projects for the public and private sector.

Mr. Gonzalez has worked for a very selective client base, including Grupo Sura,
Colinversiones, Isagen’s Management, Electricaribe and Electrocosta (Unión
Fenosa), Mitsui, Toyota, General Motors, Renault, Banco Santander, Mapfre,
Telefónica Móvil, Stratus Oil & Gas, Grupo Planeta, Petrotiger International, San
Antonio International, RCS Media, Pacific Rubiales Energy, Industria Nacional de
Gaseosas S.A. – Coca Cola and Laboratorios Andrómaco, among others.

Mr. Gonzalez has led multiple engagements in Latin America and in the United
States.
Education, Licenses &
Certifications
MBA - Loyola University, US
BSc in Industrial Management –
Purdue University, USA
BSc in Economics – Purdue
University, USA
Mr.Gonzalez has a strong background in corporate finance and transaction services
from having led various due diligence projects, valuation, M&A projects and
infrastructure projects in both the sell side and buy side of the transactions, which
include the following:
David Villalba – KPMG Colombia
Background
David Villalba
Senior Manager
KPMG Colombia

David was Deputy Minister in the Ministry of Transport. During his tenure, David led
the transportation strategic plan, the Integrated Mass Transit Systems and the
development of the logistics and port policy. As Deputy Minister, David also lead the
management of multiple Public Private Partnership (PPP) projects and supported the
risk, legal and regulatory analysis and the financial structuring for PPPs and concession
projects.

David worked as well in the National Concessions Institute. He structured technically,
financially and legally multiple concession projects for infrastructure. The most
important project was “Ruta del Sol”, the longest road concession developed in
Colombia (1070 km). David also promoted structured projects to potential investors,
both local and international.
Professional experience and industries
David has worked as advisor in the Ministry of Finance and Public Debt. David
proposed schemes to attract potential investors in structured projects like concession,
capitalization, grants and sales of assets in public companies. The most important
projects were:

− Sales of shares owned by the Nation
Tel +57 1 618 8130
Fax +57 1 623 3380
Mobile +57 315 336 6479
[email protected]
− Project evaluation of Bus Rapid Transit Systems
− Strengthening Scheme Colombian Postal Company
− Monitoring of road and airport concessions and participation in the structuring
Committee
Function and Specialization
David is a senior manager in the
Infrastructure area of Transactions
& Restructuring in KPMG
Colombia, practice specialized in
supporting the development
infrastructure industry businesses.

Education, Licenses &
Certifications
• BSc in Economics, Universidad
del Rosario, Colombia.
• Postgraduate in Finance,
Universidad de los Andes,
Colombia.
• Master in Government and
Public Policy, Universidad
Externado de Colombia.
− Structure of the concession of the airports of San Andres and Providencia
David has worked as advisor in the National Planning Department (DNP), in the DNP
David supported the strengthening and consolidation of control frameworks and
private participation in infrastructure sectors (energy, transport, telecommunications
and water). He also participated in the formulation, monitoring, control and evaluation
of policies and strategies in the infrastructure sectors. the most important projects that
David advised are as follows:
− Project Tracking of massive transport integrated systems
− Road concessions project tracking

David has also worked as an independent advisor in the following projects:
− Advise in due diligence and process of structuring the project “Colombia Pacific
Western Gate and Ports”.
− Technical assistance in order to make diagnosis and proposal for the Initiative for
Regional Infrastructure Integration (IIRSA).
− Technical assistance in order to make a socio-economic impact assessment and
environmental disasters in the transport and energy sectors caused by rains, floods
and landslides in Colombia.
− Analysis of economic and social benefits of private initiative projects.
CONTACT
Camilo Gonzalez
Partner
KPMG Advisory Services
Transactions & Restructuring
T: +57 1 6188180
E: [email protected]
David Villalba
Senior Manager
KPMG Advisory Services
Global Infrastructure
T: +57 1 6188140
E: [email protected]
kpmg.com.co

KPMG Colombia Infrastructure Opportunities

Transcription

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