What can we expect from the 2022-2026 National Development Plan in terms of transport infrastructure?

According to Article 341 of the Colombian Constitution, the government must submit the National Development Plan to the Congress within six months after the beginning of the presidential period. For the current Government, the deadline will expire in February 2023.

The National Development Plan will be the road map of the current Government, since it is the formal and legal document in which campaign government program will be materialized and the guidelines of the plans and programs to be executed during the next four years will be established.

Although it is not possible to know yet what the objectives and goals of the Government will be in terms of transport infrastructure during the next four years, the campaign government program and the statements of the new Minister of Transportation and the new president of the National Infrastructure Agency ("ANI"  by its acronym in Spanish), give us some insight into what we may expect to see in the 2022-2026 National Development Plan.

President Gustavo Petro's campaign government program

President Gustavo Petro’s campaign government program foresees a national infrastructure transformation plan, through which the competitiveness of Colombian industry can be increased, by identifying and meeting the needs of world trade. This would be achieved through the development of rail and river transportation modes and the implementation of intermodal Infraestructure projects.

Specifically, in his campaign government program the newly appointed President proposed: (i) the construction of an electric railway network complementary to the Panama Canal; (ii) the recovery of the sustainable navigability of rivers; (iii) the increase of airport capacity in the terminals with the highest demand; (iv) the promotion of the development of specialized intermodal logistics platforms; and (v) the development of public mobility systems with clean energy and affordable rates for all citizens, among others.

The roadmap for the transport sector

The new Minister of Transportation has informed that the main objective to be pursued during the current Government's term regarding infrastructure projects will be: (i) the reactivation of the railroad system and river navigation; (ii) the reduction of bureaucracy in the structuring of Infraestructure projects; (iii) strengthening dialogue with communities and (iv) the strengthening of public works contracts, among others. He also emphasized the importance of having the support of the financial system, which has traditionally been a great ally of the Colombian government in the development of infrastructure projects.

Furthermore, the new president of ANI, referring to the focus of his administration during the government of Gustavo Petro, has stated that in the next four years he will focus on: (i) promoting the energy transition of the transportation sector; (ii) developing infrastructure projects in the education and health sectors; and (iii) prioritizing initiatives associated with rail, river, and intermodal transportation Infraestructure projects, among others.

So, what can we expect from the 2022-2026 National Development Plan in terms of transport infrastructure?

The National Development Plan is divided into two parts: (i) the general part, which establishes the medium and long-term objectives, goals and priorities, and (ii) the investment plan, which provides the budgets of the most important national public investment programs and projects on a multi-year basis.

Having said that, to make viable the objectives and goals proposed in Gustavo Petro’s campaign, which have been reaffirmed and developed by the Ministry of Transportation and ANI´s  president, regarding transportation infrastructure, the 2022-2026 National Development Plan should be focused on overcoming obstacles and proposing incentives for the development of rail and river transportation modes in the country. It should also set the roadmap for the prioritization of this type of projects, allocate a significant budget for their development and specify the financial resources required to make it possible.

This will require a deep knowledge of the rail and river sector and its background in the country, as well as a very precise identification of the real needs of these modes of transportation and the obstacles and problems, mainly legal and financial, that have hindered their development.

Additionally, we expect the National Development Plan to provide guidelines for a structural reform to ANI, since, up to now, it was only in charge of concessions in transportation infrastructure and, according to what has been stated by the president of ANI, it will now develop projects on other types of infrastructure, including education and healthcare projects.