Unión Vial del Sur, led by Sacyr, has brought into operation the entire Rumichaca – Pasto road corridor, in Nariño, southwestern Colombia. The investment was over € 725 million.
The commissioning of this last 9.8-km road section, thus, completing the total 83 km of this great-capacity road project and also improving safety and comfort. The project was led by the Colombian National Infrastructure Agency (Agencia Nacional de Infraestructura, ANI, in Spanish).
The concession company will oversee the operation and maintenance for 20 years. “Our main challenge currently is to enforce compliance with traffic regulations, educating to mind the divided highway sections, reducing accidents and proper infrastructure maintenance”, said Germán de la Torre Lozano, Manager at Vial Unión del Sur
This is the most important road infrastructure in southwest Colombia and is also the first ever great-capacity road in Nariño, which in addition contributes to an improved quality of life in the local communities and greater regional competitiveness, creating positive impacts on the more than 550,000 residents of the seven municipalities in the road’s neighboring areas.
The main project highlights are:
- Operation and maintenance on an 83-km road corridor. • Rehabilitation on a 15.7-km road section between Rumichaca and San Juan, Ipiales.
- 62.1 km divided highway section from San Juan to Catambuco (25 km new construction).
- 5.2 km upgraded between Catambuco and Pasto.
- Nearly 14,000 people worked on the project, 80% of them being locals from the project’s influence area.
- 644,000 trees planted on a 794-ha area for environmental conservation.
- 95 entrepreneurial projects strengthened.
- 840 beneficiery families.
- 292,000 people received training on environment, leadership, and road safety.
Awarded social financing
This project’s social financing won a LatinFinance Award in the category "Infrastructure Financing of the Year: Andes", and a Bonds & Loans award in the category “COP Bond Deal of the Year” for the project finance by Unión Vial del Sur. Both awards recognize innovation practices in the structuring of the operation with a social label, and its execution at the highest level on international markets.
The Rumichaca-Pasto social financing reached US$ 800 million. It included a US$ 262 million social bond, a € 278 million multi-trench bank loan, and another one in Colombian pesos equivalent to US$ 260.