Industry Trend Analysis - National Government Support Boosts Bogota Metro Project - JULY 2017
BMI View: Increased support from the Santos administration for the Bogota Line 1 metro provides further momentum for the project which we expect will move forward following years of delay. Still we note risks generated by the project location , reliance on national government financing and a revocation campaign against Bogota's mayor that could lead to delay s in the launch of the tender for the project.
The decision by the government of President Juan Manuel Santos on May 30 to declare the Bogota Line 1 metro a 'project of national and strategic interest' (PINE) is the latest in several major moves by the government that support our positive outlook for the USD4.4bn metro project, the largest transport infrastructure project in the country's pipeline.
The assignment of the PINE designation to the Line 1 project will allow the project to benefit from the coordinated management of the Inter-Sectoral Commission on Infrastructure and Strategic Projects (CIIPE), a step we expect will quicken the planning process and increase the probability that the tender is held on schedule in late 2017 or early 2018. The Line 1 project, substantially redesigned since current mayor Enrique Penalosa took office in January 2016, entails the construction of a 25.3km elevated rail line with 15 stations (phases 1 and 2) running from Portal Americas in western Bogota to the centre of the city and then north along the Avenida Caracas as well as the future expansion of the line to the north (phase 3).