Challenge
After years of neglect, many of Colombia’s roads are in poor condition. The World Economic Forum ranks Colombia 110 out of 137 countries for quality of roads, and this weak infrastructure restricts the local economy. Much of the short-haul domestic travel and freight in the country depends on costly air transportation, and the lack of road networks impedes the transport of rural goods to market.
Solution and Impact
Up to $250 million in financing is supporting construction of the 84 kilometer Rumichaca-Pasto Toll Road in southeastern Colombia. The new four-lane highway will reduce transit times between the city of Pasto and Ipiales near the Ecuador border, and improve safety along treacherous mountain corridors with improved lighting shoulders, signage, and road design.
$250 million in development financing played a critical role in mobilizing additional financing to support the nearly $1 billion cost of the project.
Projected to serve almost seven million vehicles per year by 2020, the road will also expand a major commercial route to help rural farmers reach larger markets.
The toll road advances an ambitious $50 billion infrastructure investment program by the Government of Colombia to build up to 40 new roads to foster regional development and promote trade.
In addition to improving transportation infrastructure, the project will stimulate the local economy by employing up to 2,500 workers, and spending more than $400 million on procurement of local goods and services during construction.
The $250 million in development financing played a critical role in mobilizing additional financing to support the nearly $1 billion cost of the project.