The company purchased 100% of the shares of this Fourth Generation (4G) road concession that connects these two important cities and is part of the most important international and tourist commerce corridor in the north of the country.

This acquisition formalizes the Group’s entry into the road concessions market in Colombia and increases its road infrastructure to 1.164 km in Colombia and Chile.

As the pandemic affects economy, the ISA Group is committed to a sector that is fundamental for creating jobs and the country’s economic revival.
Through ISA INTERVIAL Chile, an affiliate of the group and the main operator of interurban road concessions in that country, the acquisition of 100% of the shares of the Concesión Costera Cartagena Barranquilla S.A.S. was completed, in accordance with the purchase agreement signed on October 24, 2019.

This transaction amounted to COP 2 trillion, including capital and debt. With this transaction, the group will consolidate an EBITDA of approximately COP 222 billion pesos in its financial statements, thus getting closer to reaching to the goals defined for 2030.

This is a new milestone for the Group, which has been working to provide energy infrastructure development in Colombia for five decades, now adding this new business unit in the country, which is critical to Colombia’s GDP growth. Likewise, in this difficult situation due to the pandemic, this acquisition will be another contribution to the economic revival of the country and to territorial strengthening, the protection of the environment, and the construction of the social fabric.

“This transaction, which required work teams from different countries, was the successful ending of several months of negotiations with regulation entities, insurance companies, and financers of the concession. We hope that our affiliate ISA INTERVIAL Chile is a relevant operator in Colombia, and that this acquisition helps continue to contribute to the progress of the Caribbean region regarding the road infrastructure business, as we have been doing with the energy transmission business,” Bernardo Vargas Gibsone, ISA’s CEO, said.

For Eduardo Larrabe Lucero, CEO of ISA INTERVIAL Chile, “Concesión Costera is the first major milestone in the company’s regional expansion. We expect to make a major contribution to the Colombian road concession market.”

The Roads business unit plays a relevant role in the Group’s portfolio, as it is a source of diversification. The Group’s investment plan for 2030 includes USD 12.500 million for growth, of which approximately USD 2.900 million will be used in the Roads business unit.

With this acquisition, ISA’s operating revenues would be distributed as follows: Energy 73%, Roads 23%, and Telecommunications 4%.

Several external advisors accompanied the ISA Group in this whole transaction, including Brigard Urrutia and Clifford Chance for legal and international affairs, Structure Banca de Inversión for financial affairs, and Deloitte as auditor.

About the concession

Concesión Costera Cartagena Barranquilla S.A.S, a company incorporated under the laws of the Republic of Colombia, subscribed with ANI the Concession Contract No. 004 on 10 September 2014. This Concession has 146 kilometers of roads and connects two main cities (Tranche 1: Cartagena-Barranquilla 110 km, and Tranche 2: Circunvalar de la Prosperidad between Malambo and Barranquilla 36 km of double lane).

The project includes the Viaducto Gran Manglar located on the Ciénaga de la Virgen in Cartagena, with an extension of 5,4 km that, besides being the longest in Colombia, received the Pan American Sustainable Development Award, the National Engineering Award, and the National Environmental Award, among others, because of its minimal impact on the mangrove and minimal occupation of the swamp.

The work contracted in the Concession has reached 98% progress, taking second position in progress regarding the Fourth Generation (4G) program in Colombia.

In Cartagena, this Concession crosses very relevant tourist and urban development sectors. In Barranquilla, it will improve mobility and access to the port area on the Magdalena river.

About ISA INTERVIAL Chile

ISA INTERVIAL Chile is the largest operator of interurban roads of the country and is in charge of the control, operation, and management of five Concessionaire Companies along 907 km of the South 5 Route, from Santiago to the Rio Bueno city (Ruta del Maipo, Ruta del Maule, Ruta del Bosque, Ruta de la Araucanía, Ruta de los Ríos), through which more than 151 million vehicles pass every year. The company is also building 136 km of Rutas del Loa.