John Laing acquires interest in availability-based road project in Colombia
John Laing Group plc ("John Laing" or the "Group"), the responsible investor and active manager of infrastructure projects internationally, is pleased to announce that it has agreed to acquire a 21.15% interest in the Pacifico 2 road PPP project (“Pacifico 2” or the "Project”) in Colombia for a total consideration of COP151 billion (or approximately £32 million). The Group has agreed to acquire the interest from Construcciones El Condor (“Condor”) and the transaction is expected to complete during early 2021 subject to customary conditions. Following the transaction, the project will be owned by Odinsa (78.85%) and John Laing (21.15%).
Located 20 kilometres south of Medellin, the second largest city in Colombia, Pacifico 2 is an availability-based public-private partnership project with an operating concession that runs to 2043. It includes the construction of a new 82 kilometre dual carriageway and two tunnels, as well an upgrade of 54 kilometres of existing road.
The project is part of the Colombian government’s Fourth Generation (“4G”) road building PPP programme aimed at improving road connectivity and safety across the country as well as supporting regional economic growth. Once completed, the road will provide a valuable connection between some of Colombia’s most important cities, including Medellin and Cali, as well as the country’s largest port, Buenaventura. Construction is expected to complete during 2021.
This is John Laing’s second PPP investment in Colombia and builds upon our strong expertise in the roads sector, local presence and our extensive partnership network. As an acquisition of a stake in an existing project, this is an example of John Laing’s ability to access investment opportunities which are additional to its publicly procured pipeline.
Alex Yew, John Laing’s Managing Director for Latin America, said:
“We are delighted to be announcing our second investment in Colombia, a country with a strong PPP framework and a healthy pipeline of opportunities. This investment builds on our initial success with Ruta del Cacao, another 4G road project, which we invested in during 2019, and reflects our local presence and relationships that we have developed in Bogotá. We look forward to actively working with our partners to deliver a project that will connect local communities and key cities, reduce travel times and transportation costs and improve road safety.”