Colombia: Approved US$150-million operation for road infrastructure

The Andean Development Corporation (CAF) approved an operation for US$150 million for the Republic of Colombia to partially finance the Road Infrastructure and Regional Development Program. The executing body will be the National Road Institute (INVIAS) attached to the Ministry of Transport.

CAF President & CEO Enrique García emphasized the importance of this approval as a contribution by the multilateral institution to the Colombian government’s efforts to improve road infrastructure and optimize conditions of transport, goods and services.

García added that the CAF financial resources would support Colombia’s initiative to improve its levels of competitiveness and achieve the objectives set out in the National Development Plan, which are to optimize the country’s productive conditions with a view to increasing participation in international markets. Specifically, the financing of the Program will improve physical infrastructure for land transport through two components: maintenance of the main corridors of the primary road network; and paving of secondary and tertiary roads, which is the component to be financed by the CAF loan.

The Road Infrastructure and Regional Development Program is expected to improve connections with the main trunk roads, bring productive areas closer to the main centers of distribution of goods and services, optimizing the costs associated with distribution. These improvements in transport conditions will also have a direct economic impact on reduction of vehicle operating costs, which will increase the competitiveness of the prices of goods and services.

This development will in turn strengthen environmental and social aspects in remote localities by improving transport conditions, resulting in improved road safety, shorter travel time and access to distribution centers at lower cost, which will promote development and raise the quality of life in small localities.

Although execution is in the hands of INVIAS, the agency of the Ministry of Transport responsible for the national road network, the Program also covers roads that come under subnational governments, so departments and municipalities will participate actively in the execution of the projects and future maintenance work.

During the last few years, Colombia’s secondary and tertiary road system has deteriorated due to the scarcity of resources for road building and maintenance. This process has generated high operating costs for vehicles and longer travel time, which has had an adverse effect on transport conditions for merchandise and passengers. National productivity has been affected since Colombia’s foreign trade moves on only 8,000 kilometers of the road network, which is less than 5% of the total.

Some regions of Colombia have never had adequate roads, and over 80% of the road network is unpaved, resulting in deficient communications with the main areas of supply and distribution, which further delays possibilities of integration and economic and social development for these regions. These problems have had a negative effect on rural areas with income below the national average, and also on the prices of agricultural and agroindustrial goods in the main urban centers.

The transport sector in Colombia has received support from CAF since 1992 through loans totaling US$952 million which have financed a series of projects of national interest. The projects with greatest impact include: Buga-La Paila highway, Roads for Peace program, Mass Transport Project for the city of Bogota (Transmilenio), and La Línea Tunnel.