The Process of Funding Highway Projects in Colombia: Outlook and Challenges

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The Process of Funding Highway Projects in Colombia: Outlook and Challenges

Juan D González-Ruiz

The development of highway infrastructure projects in the Republic of Colombia, a country at the northern tip of South America, has been accompanied by several challenges, particularly in the funding process. This article examines the 4G Highway Program in Colombia and efforts to improve the process of funding highway infrastructure projects through capital markets, debts funds, the bank sector, and institutional investors. It also indicates the main challenges and prospects in the process of financing highway projects and characterizes funding strategies according to their origin and stage of development. The promotion of infrastructure projects requires the active participation of both private investors and the Colombian capital market. The increasing development of infrastructure projects in Colombia, particularly in the highway sector, is contrasted to low quality levels and low coverage; these do not allow for the optimization of time and increasing costs of transporting raw materials and final products from final production centers to consumption centers.