Colombian Treasury Discusses Bogota Metro Financing, PPP’s and Potential Operators
This week during the Republican Congress the Colombian government discussed details National Development Plan, including budgets for the capitals first metro line. The District Government have ensured that by the end of February 2015, conclusions and agreements will be in place in regards to financial structuring for the project.
“By late February we will have consolidated information, we will know if we have all the necessary reports and we will have finalised the source of financing for each part of the Bogota’s first metro line, which will be a combination of public and private funding”, Treasury Secretary Ricardo Bonilla explained.
He elaborated, noting “as for funding, we will have defined three components: the tunnel and the shell of the stations, which will be through Conpes (money provided by the state) and general general public investment; the station exists, comercial premises, which will be raised through PPP’s (Public Private Partnerships); and the workshops and trains, which could be operated by a private concessionaire or a public operator”.
The Secretary of the Treasury indicated that the financial structuring is well underway, and will be comprised of three components; network demand, ridership projections, structures, station resource, and the fare levels. These conclusions will be necessary to calculate the viability and calculate the potential profitability for the operator, which will be reflected in any state concessions for the project.
All issues surrounding financing and projected costs are expected to be completed in advance of the June deadline, at which time the tender for the works on the project will be opened to bidders.