After the Government, through the ANI, announced in Portfolio its plan to structure projects, through international cooperation and its ambitious commitment to invest $50 billion in 5G projects; Juan Martín Caicedo, president of the Colombian Chamber of Infrastructure (CCI), told this outlet that the current climate for investing in infrastructure is not the best, and he also reiterated the importance of paying tolls.
How do you see the climate for investing in infrastructure?
Unfortunately, these days, it is not the most rosy. The reason is related to government decisions such as, for example, freezing toll rates at the beginning of this year, and which have sent messages of uncertainty and legal insecurity to the big players in the national and international financial sector.
(Unilever expands its operating capacity with a new ‘megaplant’).
During the last three decades, the country has been able to gain the confidence of investors who saw Colombia as an extremely attractive destination for bet on the development of infrastructure. Retracing this path is not strategic to continue making this sector a bastion of development and economic growth.
Nevertheless, we trust that the Government will give a change of direction, precisely, to return to the path of 30 years of trust.
What can be said about the image that the country gives with problems such as the Autopistas del Caribe concession?
It is worrisome, Clearly, that private interests end up putting themselves before the interest, not only of the Caribbean Coast, but of the country (…) It cannot be that a few put such a project in check, among others, on account of a short-term opportunistic interest term, which also links to the next regional elections.
(They carry out a test of 5G technology in the Barrancabermeja refinery).
What challenges exist for investors to feel confident and place their capital?
The country demonstrated, for three decades, that trust is built on two basic elements: stability and clarity in the rules of the game.
They were, precisely , these two ingredients that allowed world-class financiers and investors to believe in Colombia as a destination for development in terms of infrastructure.
Scaring them away would be equivalent to dealing an accurate blow to the future and the advancement of transportation infrastructure . Thus, the challenge is to continue walking on the ground that was traced over 30 years and that more than demonstrated that it leads to a good port. Would it be worth taking an unknown path?
(Companies in the country make their own energy transition).
What other factors could cause investors not to be interested in Colombia ?
Factors such as high interest rates and high inflation rates should be kept in mind.
They are committed to investing $50 billion in 5G, is this scenario Could it interfere with that goal?
As you rightly say, it will require resources close to $50 billion. Hence, then, the urgent need for the ministries of Finance and Transportation to generate that climate of investor confidence that we have been talking about.
With the concession model, the country did in 20 or 30 years, what hadn’t done it in a century. This stimulated the formidable growth of transporters, which before had no roads to travel on.
(MinTic and Rappi will give scholarships for training in technology and programming).
Although builders want to enter 5G projects, how do you see the rate of progress of the bidding processes?
We cannot ignore the fact that during the first months of the year the sector decreased by almost 15% and there is no doubt, moreover, that the Government’s decision to freeze toll rates could discourage investment and could now stop the first wave of the fifth generation of concessions dead.
*100058 *It is for all these reasons that we recommend that the Government promptly contract already structured projects whose investment amounts to $12 billion in capex, such as Villeta-Guaduas, Pasto-Popayán, Puerto Gaitán-Sogamoso and the La Dorada-Chiriguana Train.*100059 *
Current projects are having trouble getting funding.Why?
They will face problems if the sources of payment for financiers and investors continue to be affected by wrong decisions such as not indexing or increasing toll rates with inflation, or not disbursement of the sovereign commitment to pay future terms, provided for in the structuring of road concession programs.
(Enel makes investments to improve service response in Bogotá).
It must be updated to the as soon as possible, the rate scheme affected by the government decision at the beginning of the year. This is confirmed by Fedesarrollo on the one hand, and the Attorney General’s Office on the other. I attest here to the positive receptivity that we found in Minister Bonilla and his entire team, to honor the State’s commitments with the concessions. This reassures, in principle, investors and financiers.
What should the Government do to strengthen the relationship with investors?
70% of the investment budget for the sector in 2023 is committed to road projects for the fourth and fifth generation of concessions.
Legal certainty is required, we insist, regarding the sources of financing (tolls), and starting up the new structuring that exist today, including the so-called private initiatives, which would allow ANI to show eloquent progress in ports, airports, highways and railways.
PAULA GALEANO BALAGUERA
Portfolio Journalist
