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Project Name: Bogotá Streets |
Country: Colombia
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Highlights :
- The World Bank Group’s first direct engagement at the subnational level in Colombia without a sovereign guarantee.
- A senior unsecured loan of up to US$50 million to finance rehabilitation of the District’s urban street network as well as incremental construction of sidewalks and walking/bike paths.
- IFC’s participation helps complement Bogotá’s own capital market borrowings and optimizes its overall debt profile by matching the timing of disbursement of funds with the cash needs of a complex investment program. A parallel advisory services program will advance the development of a longer term roads maintenance strategy in Bogotá.
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About the city:
Bogotá, the capital and economic center of Colombia, has a population of 7.3 million (about 16% of the national population) and contributes about a quarter of the country’s GDP. Bogotá’s professional municipal management has contributed to the city’s revival over the last decade and established a solid record of innovative policy and project implementation. It has made considerable advances in establishing a strong financial management and local governance structure.
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Financing objective:
Bogotá has been aggressively addressing deferred maintenance of its extensive road network, some 50% of which has been judged in poor condition. The city has embarked on a two year, US$150 million equivalent, capital expenditure program dedicated to addressing urgent road network rehabilitation and conservation needs. They are complementing the rehabilitation program with construction of sidewalks and bikeways to further enhance mobility.
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The structure of the project :
The IFC unsecured senior loan of up to US$50 million has a 17 year maturity and 2.5 year grace period, matching the project implementation period and economic life of the asset.
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The outcome :
The Project will reduce vehicle operating costs and traffic accidents, and improve traffic flows. The construction of sidewalks, bike paths and pedestrian/bike overpasses will increase pedestrian and cyclist safety by separating these slower flows from fast moving traffic on the main carriageways. The parallel advisory support aims at helping the city move towards more sustainable road network management and maintenance practices over the medium term.
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