Spotlight: US$4.6bn in Colombian highway PPP’s facing delays

As of January 30, six public-private partnership (PPP) highway projects in Colombia, worth 16tn pesos (US$4.6bn), were facing significant delays in construction works.

According to the transport ministry’s infrastructure management platform GPI, the following projects were behind schedule.

Rio Magdalena Highway (US$656mn): Expected to be 77% complete by last month, the project has only advanced 11% because OHL had its contract rescinded in April 2019 by concessionaire Aleática, citing significant delays in the works, which only resumed in October, daily El Colombiano reported, quoting sources from infrastructure agency ANI.

The 4G highway contract awarded in 2014 entails works on 144km of roads, of which 74km correspond to a new road between Remedios and Alto de Dolores in Antioquia department, while the rest involve maintenance works on the section between Alto de Dolores and Puerto Berrío.

Autopista al Mar 2 (US$973mn): This was 14.4% complete as of January, well behind the expected 45%. Although this 4G contract was awarded in 2015, the technical manager of concessionaire Autopistas Urabá told El Colombiano last week that works only began in earnest in January 2019 due to difficulties with financial closure of the project. 

The PPP involves 254km of roads connecting the Antioquia municipalities of Cañas Gordas, Uramita, Mutatá and El Tigre. Works also include building 27 bridges and 22 tunnels.

Conexión Norte Highway (US$492mn): While completion had surpassed the halfway mark by January 30, this 4G project was supposed to be 85% complete, with concessionaire Autopistas del Nordeste blaming armed attacks on construction sites that also triggered mass resignations of workers.

The project involves 145km between Remedios and Caucasia in Antioquía department, as well as building five tunnels and 93 bridges.

Ruta del Sol-Section 3 (US$1bn): The road was supposed to be finished by now, but it has only reached the 30.9% mark. It was awarded to consortium Yuma in 2010 as part of the 3G highways program.

Delays have been reported as far back as 2014, and consortium member Conalvias filed for insolvency in 2015. This led to works being halted since 2017, but ANI said last week that they will resume on February 20 following an agreement with Yuma. 

The project involves 368km of roadway divided into two corridors, the first between Ye de Ciénaga (Magdalena) and San Roque (César department) and the second between El Carmen de Bolívar (Bolívar) and Valledupar (César).

Santana-Mocoa-Neiva highway (US$1.1bn): This project is only 5.2% complete despite being expected to be completed by now.

The project lost its concessionaire last year, as Aliadas para el Progreso was unable to secure financing. In November, President Iván Duque said that CCA Colombia Corp would take charge of completing the highway, according to a release from the Huila department government.

The 4G contract involves works on 447km of roads between Putumayo and Huila.

Sisga Transversal highway (US$358mn): This initiative reached the 55% mark in January, while it should have advanced 81%. This is due to delays related to land acquisition, as the concessionaire ended up having to buy more land than anticipated due to floods on the road. 

Operator Concesión del Sisga ended up suing ANI for 9bn pesos, but eventually accepted 5bn pesos in compensation, as well as a six-month extension to the deadline to finish the works, Radio Caracol reported last year. 

The project entails 137km of roads between El Sisga (Cundinamarca department) and El Secreto (Casanare). Other tasks include repairs to 15 bridges and stabilizing high-risk zones along the highway.