Malla Vial del Valle del Cauca- Draft TOR of the first project of the Fifth Generation (5G) Road Concessions Program in Colombia

On April 6th, 2020, the National Infrastructure Agency-ANI published the draft documents of the bidding process (Draft Terms of Reference- TOR) for the award of the first 5G project in Colombia named Malla Vial del Valle del Cauca: Accesos Cali - Palmira.

The purpose of the tender is to award a concession contract under a PPP scheme for the construction, maintenance and rehabilitation of a road that will connect Buga (Valle del Cauca) and Santander de Quilichao (Cauca) that aims to improve the connection between the most important communities in Valle del Cauca.

Scope

The Project is 310 kilometers long and is comprised of the following interventions: (i) the construction of 15.6 km of new road between Cali and Jamundí, (ii) the construction of 12.6 km of new roads, (iii) rehabilitation and maintenance of 291.4 km of existing corridors and (iv) construction of 2 road interchanges, 2 vehicular bridges over the Cauca River and 13 pedestrian bridges.

The works will be carried out divided in five functional units and an additional one in which operation and maintenance activities will be carried out over 310 km of corridor.

The duration of the works is estimated to be five years, including the pre-construction period (12 months) and the construction period (48 months).

The contract’s term is variable, for a period of 29 years or once the concessionaire reaches the VPIP (present value of the toll collection calculated at the initial date expressed in pesos of the reference month).

The Capex value of the Project is COP$1.160.000.000.000 (USD$291,860,640)

Schedule

The bidding process is expected to take place between May 6, 2020 and October 8, 2020, and the relevant dates to be considered are the following:

• Deadline for submitting observations to the Draft TOR: April 22, 2020
• Issuance of Resolution to Open the Public Tender and publication of the final version of the TOR: May 6, 2020
• Closing of the Public Tender: August 6, 2020
• Public Adjudication Hearing: October 9, 2020

Requirements for bidders

The Draft TOR require the fulfillment of two types of requirements: (i) selection criteria (qualitative selection) and (ii) contract award criteria.

Selection criteria include (i) corporate power, capacity and authority; (ii) financial standing and (iii) specific experience in financial investment.

In order to fulfill the experience in financial investment requirements, bidders must accredit the following: (i) one infrastructure project whose financial closure’s value is of at least COP $ 348,800,000,000 [1] [1] For the purposes of this document, which is for informational purposes only, an exchange rate of USD $ 1 = COP $ 3,913 is used. However, it must be taken into account that the conversion must be carried out by each bidder with the TRM of the day of issue of each document to be used to accredit the requirements. (USD $ 87,755,812) or (ii) up to four infrastructure projects whose added financial closure’s values is at least COP$ 465,100,000,000 (USD $ 117,016,136), provided that at least one of the accredited financing has been of at least COP $ 232,600,000,000 (USD $ 58,520,648).

The Draft ToR specifies the relative weighting which it gives to each contract award criteria as follows: (i) economic tender will award up to 700 points; (ii) local labor supply will grant up to 100 points, (iii) support to the national industry and reciprocity will grant up to 100 points; (iv) quality factor will grant up to 90 points and (v) employers with disabilities will grant up to 10 points.

The quality factor score will be awarded if the bidder offers a series of additional works and the use of modified asphalt mixes with recycled rubber grain.

Process number: VJ-VE-APP-IPB-001-2020

Secop I Link:

https://www.contratos.gov.co/consultas/detalleProceso.do?numConstancia=20-19-10660579

If you require advice or more information in this regard, do not hesitate to contact us.