Vía 40 Express
The loan involves the rehabilitation of 145 kilometers of highway divided into eight functional units between Bogota and Girardot, a key section of the Bogotá – Buenaventura corridor. Construction works include the addition of a third lane extending 65 kilometers from the entrance to the Sumapaz tunnel in Melgar to the highway’s intersection with the road to Sibaté and the rehabilitation of the Sumapaz tunnel (4.2 km).
The IDB Group would grant a loan for up to 375 billion Colombian pesos with a term of 15 to 18 years and the Colombian peso loan will be indexed according to the CPI. The IDB Group loan would be supplemented by other short- and long-term loans from local and international banks, debt funds and possibly capital market issues.
The project is expected to generate direct and indirect employment and to have a positive impact on connectivity between Bogota and the 4G road network that joins the capital to the Pacific coast ports, which are strategic to the country’s economy.
The project has been classified as a Category A project in accordance with the IIC Environmental and Social Sustainability Policy, given that it could produce the following negative environmental impacts: i) alteration of air quality due to construction activities and subsequently as a result of increased traffic; ii) erosion due to planned movements of land; iii) increased noise and vibration levels due to the use of heavy equipment and, subsequently, increased traffic; iv) loss of vegetation and forest cover with possible impacts on fauna, flora and natural habitats; and v) alteration in the quality and flow of water and local hydrology, a particularly important aspect in construction of the tunnels.
The main impacts in the social arena are related to: i) increased spontaneous migration in the search for better economic and employment opportunities, with the resulting increase in the demand for basic sanitation and health services; ii) increased property values of lands adjacent to the project with a potential impact on speculation in the real estate market; iii) interruption or diversion of traffic; iv) physical or economic displacement of the population as a result of the release of the right of way; and ix) possible change in the population’s living conditions due, among other factors, to increased dynamism in the local economy, the creation of new jobs, and the acquisition of land.
In accordance with Colombian legislation, the UF2 functional unit requires that an Environmental Impact Assessment (EIA) be conducted and submitted to the National Environmental Licenses Authority (ANLA) as a step prior to obtaining its environmental license while the other UFs (UF1 and UF3,4,5,6,7, and 8) only required preparation of Plans for Adaptation to the Environmental Guidelines (PAGA), given that the scope corresponds to rehabilitation and improvement activities only. These other UFs require approval and permits from the regional environmental corporations (CAR) of Cundinamarca and Tolima.
Both the EIA and the PAGA include various plans to prevent, mitigate, correct and/or offset undesired impacts. IDB Invest intends to contract an independent environmental and social consultant to help in the Environmental and Social Due Diligence (ESDD), process, evaluate probable environmental risks, confirm the project’s categorization, review management plans for mitigating risks, and define a project environmental and social action plan (ESAP). During the ESDD, the IIC will visit the project site and will evaluate the environmental, social, and health and safety system to be adopted, including the related plans and procedures; will inspect the planned or operational sites of encampments and industrial areas; will verify the scope of the socialization process; will evaluate the basic information; and will review how project-related social and labor issues are being managed.
An Environmental and Social Review Summary (ESRS) will be prepared and published on the IIC website once the ESDD process has been completed.