Colombia terminates the Bucaramanga-Pamplona road contract early

ANI Statement

This is an automated translation of the press release issued in Spanish

The National Infrastructure Agency (ANI) regarding the Bucaramanga-Pamplona project reports that:

1. Given the unviability of the project, the parties agreed to the early termination of Concession Contract No. 002 of 2016, given the impossibility of executing the Works Plan established for the road project.

2. This early termination is carried out taking into account that:
. The environmental license granted by the National Environmental License Agency (ANLA) for the construction of Functional Unit 1 established among the obligations for the development of the project: Submit in the first Environmental Compliance Report - ICA -, the documentary supports where it is evidenced the consultation with the Municipal Authority or other Authorities related to the proposed interventions within the tertiary road infrastructure.
. Despite the numerous efforts carried out by the ANI and the concessionaire with the authorities of the municipality of Floridablanca, it was not possible to agree with the Mayor's Office on the use of the industrial roads required by the project for the execution of the works of Functional Unit 1 or Connecting C1-C2, which constitutes an Event Exempt from Liability, which causes the total suspension of the contractual term.

. This situation was recognized by the Arbitration Court in the Award issued on March 28, 2023 and also reinforced by the Decision of the Panel of Friendly Composers of the Project in a decision of September 4, 2023.

. The impossibility of executing Functional Unit 1 or Connecting Unit C1-C2 generated the loss of validity of the project's Works Plan, affecting the execution of this and the other Functional Units, as well as the possibility of obtaining financing to execute the entire contract. .

3. Due to the situations stated, as recognized by the pronouncements of the Arbitration Award and the decision of the Panel of Friendly Composers, the ANI and the concessionaire show that several of the causes have been established for the early termination of the contract, therefore The reversal stage must begin, which will last 300 calendar days, in which the concessionaire will carry out all the necessary activities to comply with the delivery of the road corridor to Invías.

4. While the reversal stage is underway, the ANI and the concessionaire Autovía Bucaramanga Pamplona SA have agreed to carry out different interventions at critical points of the Bucaramanga-Pamplona corridor, with the aim of guaranteeing the operation and passability of the road, for which They allocated $25,000 million pesos.

5. Likewise, during the execution period of the interventions at critical points and until the reversion of the corridor to the Invías, the concessionaire will continue with the operation and maintenance activities in the road corridor.