Chinese consortium of the Bogotá Metro would seek to participate in line 2

Chinese consortium of the Bogotá Metro would seek to participate in line 2

With the arrival of the Chinese consortium in Bogotá to materializing the promise to build the capital’s metro, a project that had been in dialogue for more than 50 yearss, rapid progress has been made in the bidding process and studies of three other lines.

(Chinese consortium will evaluate underground section on the first line of the Metro).

Regarding the second, which has the guarantee of the Conpes Nation for up to $7.84 billion in constant December 2021, the president of the Chinese Metro Line 1 consortium welcomes these mega-works, not just the second line.

Wu Yu, who is at the head of the union, even remarked that shareholders have shown their interest in participating in the project.

It should be remembered that the shareholders of the consortium would be the companies CCCC and Chec (China Harbor Engineering Company Limited) and XI’AN Rail Transportation Group Company Limited, which have a participation of 85% and 15% respectively in line 1 of the Metro.

“The shareholders of Chec and CCCC are very interested in finding another project to bid, in which if it is competitive they will have the work,” said Wu Yu.

(Conpes provides a guarantee for credits on Line 2 of the Bogotá Metro).

Devaluation and inflation touch the project

To date, according to Wu Yu, the consortium has requested various loans from the banks BBVA, Bancolomia and ICBC Bank of China, the latter in dollars. In addition, he plans to apply again for another loan by the end of the year. “Everything is rising even much more than in 2021, this year we already have a rate of 11%, but we think about the 28-year project, we believe that this situation and its impact will be minimal and in the short term,” said Wu Yu.

Although the president is concerned in a measured way about the rise in interest rates and its repercussions on the project’s margin, he assures that it is more essential to be able to complete the project and connect Bogotanos.

For this reason, the project is progressing faster than expected and is 125% complete.

“In the event that the dollar continues to rise, the risk is ours. If it becomes risky, we are going to look for alternatives to reduce costs and guarantee the government the same value to pay so that in March 2028 the passengers will already go up, ”he said.
Regarding the impact, the president was emphatic that if financial difficulties arise, this will not affect the progress or schedule of the project.

In order to move quickly, the consortium expects to be able to finish activities in the Calle 72 corridor soonamong others, and to start installing the foundations in April and for the month of October the beams will be located.

With this, by 2023 the people of Bogotá will finally begin to see the works towards the skies.

Underground section on Line 1

The Ministry of Transportation announced that at the request of the Chinese Government, the possibility, risks and costs of building an underground section of the Bogotá Metro Line 1 on Avenida Caracas will be evaluated.

In this regard, the president of the consortium assured that “we will do what the Metro company says in the contract, we cannot make decisions, the public area does, that is why we will abide by the determination.”

President Petro will learn about the studies on January 16.

Paula Galeano Balaguera
BRIEFCASE

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