Colombian Economy Key Facts
Posted By miforero On Monday, 6 May 2019
INFRASTRUCTURE AND LOGISTICS
- The transportation and logistics infrastructure are major drivers of foreign direct investment in Colombia. It represented 6.4% of the total FDI between January and September 2019. Moreover, the public spending in infrastructure has increased steadily from 0.6% of GDP in 2003 to a total of 3% in 2018.
- Colombia ranks fourth among Latin American countries in the Global Competitiveness Report 2019 of the World Economic Forum. The ranking highlights the potential of the country in terms of infrastructure by identifying investment opportunities by 2035. In that front, there is an opportunity of approximately USD 60 billion in road infrastructure, USD 5.7 billion in airport expansion projects, USD 3.4 billion in railway infrastructure rehabilitation, USD 1.6 billion in fluvial Infrastructure, and USD 0.4 billion in port maintenance infrastructure.
- Public Private Partnerships - PPP are the main mechanism for the development of infrastructure (Law 1508 of 2012). According to the World Bank in its ranking of Procuring Infrastructure PPP 2018, Colombia ranks third between 135 economies in terms of regulatory framework for PPPs. It is only preceded by the United Kingdom and Australia. In addition to this index, Infrascope evaluates the capacity of countries to implement sustainable and efficient public-private partnerships (PPPs) in Latin America and the Caribbean. In 2019 Colombia ranked second only after Chile.
- A large project pipeline means transport infrastructure will be the main driver of growth in the construction industry. Moreover, the 4G program represents an investment opportunity of USD 60 billion in road infrastructure. Additionally, development of tertiary roads amounts to an estimated investment of USD 1.4 billion.
- The estimated private investment in aviation infrastructure raises up to USD 5.7 billion for 2035. Major airport projects include the expansion of Bogota’s El Dorado Airport and a greenfield airport project in Cartagena, as well as the modernization of the Southwest airports.