IDB Invest Supports Road Infrastructure in Colombia, Benefiting Nearly One Million People
- The new roadway will help reduce transit time from Bogotá to Quito to six hours and will help generate more than 4,000 direct jobs.
IDB Invest provided COP 601,275 million (around $150 million) to Concesionaria Ruta al Sur, a concessionaire owned by Patria Investments and Grupo Colpatria, to finance the rehabilitation, improvement and construction of a 456-kilometer highway that will connect the towns of Santana and Mocoa with the city of Neiva (Huila department) in southwestern Colombia.
The project is expected to have a significant developmental impact by enhancing the connectivity of nearly 1 million residents across 16 municipalities in the departments of Huila, Cauca and Putumayo. Most of them are diverse communities, benefiting 11 indigenous communities, two farmer communities and a Afro-descendant community.
It will markedly improve the road infrastructure in this region by upgrading 456 kilometers of rural, urban, and interurban roads. This includes the construction of 76 kilometers of new road distributed in seven variants and other improvement sections that will allow to optimize the connection of the interior of the country with Ecuador through the department of Putumayo, reducing the journey from Bogotá to Quito in six hours.
During the construction stage, it is expected to generate more than 4,000 direct jobs. To date, the project has generated a total of 2,236 jobs, of which 1,285 correspond to local labor directly linked to the area surrounding the project, and 951 jobs correspond to international labor.
The financing has been labeled as “social financing” by Moody's Corporation, evidencing the commitment of Patria Investments and Grupo Colpatria to the development of the region.
IDB Invest will provide advisory services to strengthen Ruta al Sur institutional capacity for promoting gender equality, diversity and inclusion, conducting a gender gap diagnostic using a business-driven tool that support companies in assessing gender equality performance across the workplace, marketplace, and community, and guiding them in the creation of an Action Plan to improve in key priority areas.
Additionally, as part of the project, Ruta al Sur is implementing an environmental compensation process that covers more than 960 hectares, by the five environmental licenses approved so far.
The deal illustrates IDB Invest’s commitment to improve critical infrastructure to scale impact in Latin America and the Caribbean.
The project is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequality (SDG 10) and Sustainable Cities and Communities (SDG 11).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 390 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Ruta al Sur
Ruta al Sur is responsible for executing the Santana-Mocoa-Neiva road project, an initiative that involves the rehabilitation of 456 kilometers of roadway, including the construction of 76 kilometers of new pavement. These enhancements include the establishment of seven new bypasses and various other improvement areas. The Santana-Mocoa-Neiva road corridor is strategically positioned as a crucial thoroughfare for the transportation of both passengers and cargo between Ecuador and the southern regions of Colombia, connecting Colombia’s key consumption centers and the Caribbean Coast, making a significant contribution to national progress.
About Patria Investments
Patria is a leading alternative investment firm focused on Latin America, with 35 years of history and combined assets under management of $28.4 billion, and a global presence with offices in 10 cities across four continents. Patria aims to provide consistent returns in attractive long-term investment opportunities that allow for portfolio diversification through its Private Equity, Infrastructure, Credit, Public Equities and Real Estate products. Through its investments, Patria seeks to transform industries and untangle bottlenecks, generating attractive returns for its investors, while creating sustainable value for society.
About Grupo Colpatria
Grupo Colpatria (“GC”) is the holding company of one of Colombia´s most successful conglomerates with over 65 years of experience. A dynamic group with proven capabilities at all stages of the investment process. Grupo Colpatria has a diversified portfolio (AUM of c. $2.0 billion in 2023) with investments in capital intensive sectors with growth potential and linked to Colombia's development.