TM1 (IFC-48171)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Colombia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Puerto Salgar, Rio Sogamoso, Barrancabermeja, regions of Cundinamarca, Boyaca and Santander
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 17, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
AUTOPISTA MAGDALENA MEDIO SAS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 23, 2023

Disclosed by Bank Oct 16, 2023

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated on the project disclosure page, the IFC is considering an 8-year loan for up to COP$ 735,500mn (approximately US$150mn) for the 260 km-long “Puerto Salgar – Rio Sogamoso” concession between Puerto Salgar and Barrancabermeja in the regions of Cundinamarca, Boyaca and Santander in the northeast of Colombia. The concession is also known as “Troncal del Magdalena 1” or “TM1”, a brownfield toll road awarded in 2022 by Colombia’s National Infrastructure Agency through a competitive bidding process. The total estimated cost of the project is US$510mn. KMA Construcciones S.A.S, and Ortiz Construcciones y Proyectos S.A., which collectively form the “Autopista Magdalena Medio S.A.S.” or “AMM” group, with 50% each won the TM1 concession and will be the EPC Contractor as well.

TM1 was originally part of the “Ruta del Sol 2” concession awarded in 2010 to another consortium, which was stopped in February 2017 after completing some sections of the double lane highway and left others at different levels of progress. The new concession awarded to AMM, is approx. 45% brownfield and includes three phases:  1) pre-construction activities (i.e. road repairs to the existing road and preparation of the construction phase), 2) construction of a 123 km-long second lane and of eight bypass roads (a ninth bypass has been already built by the former concessionaire) to avoid passing through urban areas over a 47-month period, and 3) operations and maintenance for 24 years. The project is divided into 13 Functional Units (UF). Each UF is a section of the road that can be operated independently. The pre-construction phase will be completed in December 2023. Construction phase will immediately follow.               

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, the Project company is Autopista del Magdalena Medio S.A.S. (“AMM”), a special purpose vehicle incorporated in Colombia. AMM is owned by Ortiz Construcciones y Proyectos S.A. and KMA Construcciones S.A.S, with a 50% shareholding each. Grupo Ortiz is a leading Spaniard construction conglomerate with presence in 13 countries across Europe, LAC and Asia. The company operates +1,185km of toll roads including 282km in Colombia. KMA is a construction company in Colombia with 21 years of track record. The company has built +1,000km of toll roads in Colombia and is one of the top contractors for civil works, industrial buildings, water & sewage, and real estate.  

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Grupo Ortiz Parent Company Construction owns Autopista del Rio Grande S.A.S. Client Infrastructure
KMA Construcciones SAS Parent Company Construction owns Autopista del Rio Grande S.A.S. Client Infrastructure

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Autopistas del Rio Grande S.A.S.:

Luis Eduardo Gutierrez Diaz - Manager
Phone: +57 3166946235
Email: l_gutierrez@autopistamagdalenamedio.com.co
Address: Calle 93b, No. 19-21, Piso 5
Website: https://autopistamagdalenamedio.com.co

Local Access for Project Documentation:

AMM Headquarters:  Calle 93b No. 19-21 Piso 5

AMM Customer Service Office: PR 4+200 de la Ruta Nacional 4513, La Lizama, Barrancabermeja.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works