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National Planning Department www.dnp.gov.co
National Planning Department
      www.dnp.gov.co
National Planning Department www.dnp.gov.co
Public Private
  Partnerships
   Regulatory
Framework and
Project Portfolio
      January, 2018
       dnp.gov.co
National Planning Department www.dnp.gov.co
Public Private Partnerships
Regulatory Framework and                 CONTENT
     Project Portfolio
                              1.   Challenges Towards a More
                                   Competitive Country
         January, 2018        2.   Infrastructure needs in
          dnp.gov.co
                                   Colombia
                              3.   PPP Law – Legal Framework
                              4.   PPP Projects
National Planning Department www.dnp.gov.co
1
Public Private Partnerships
Regulatory Framework and          CONTENT
     Project Portfolio
                                Challenges
         January, 2018
                              Towards a More
          dnp.gov.co
                                Competitive
                                 Country
National Planning Department www.dnp.gov.co
Growth GDP (%)

January 2018
                                                                                                                                            2
                                                                                                                                                      4
                                                                                                                                                          6
                                                                                                                                                              8

                                                                                                                                        0

                                                                                                                      -4
                                                                                                                             -2
                                                                                                                               India
                                                                                                                              China
                                                                                                                        Indonesia
                                                                                                                           Iceland
                                                                                                                            Ireland
                                                                                                                      Costa Rica
                                                                                                                     Luxembourg
                                                                                                                 Slovak Republic

Challenges Towards a More Competitive Country
                                                                                                                    New Zealand
                                                                                                                                                                                                                                                                               Growth Dynamics

                                                                                                                              Israel
                                                                                                                          Sweden
                                                                                                                              Spain
                                                                                                                            Turkey
                                                                                                                             Korea
                                                                                                                         Australia
                                                                                                                           Poland
                                                                                                                 Czech Republic
                                                                                                                           Mexico
                                                                                                                        Colombia
                                                                                                                                                1,7

                                                                                                                     Netherlands
                                                                                                                 United Kingdom
                                                                                                                         Slovenia
                                                                                                                         Germany
                                                                                                                                                                  economy, with a growth above the average of these countries.

                                                                                                                             OECD
                                                                                                     Countries

                                                                                                                       Euro Area
                                                                                                                               Chile
                                                                                                                         Hungary
                                                                                                                      Switzerland
                                                                                                                           Austria
                                                                                                                    United States
                                                                                                                          Belgium
                                                                                                                           France
                                                                                                                          Canada
                                                                                                                          Portugal
                                                                                                                             Latvia
                                                                                                                           Estonia
                                                                                                                         Denmark
                                                                                                                           Finland
                                                                                                                                Italy
                                                                                                                             Japan
                                                                                                                           Norway
                                                                                                                     South Africa
                                                                                                                           Greece
                                                                                                                                                                  In 2017, Colombia was in the 37th place among OCDE and European Union countries due to the dynamics of its

                                                                                                                            Russia
                                                                                                                        Argentina
                                                                                                                              Brazil
                                                Source: OCDE – Statistic Institute – The Economist
National Planning Department www.dnp.gov.co
Growth Dynamics

       •     Colombian economy is 54st worldwide and 4th in Latin America.
       •     The public investment in Colombia in the period 2010-2016 has grown more than 61%, from 25.2 trillion
             pesos in 2010 to 40.6 trillion pesos in 2016.
       •     Colombia had the third largest export in 2017 in the region.
       •     Until November 2017 total exports were US$37,800 million FOB and total imports were US$ US$46,076
             million CIF.
       •     Colombia has trade agreements with more than 60 countries.

                                                                                                                Source : IMD WORLD COMPETITIVENESS CENTER
                                                                                                     Study economic of América Latina and Caribe –CEPAL 2015
                                                                  STATEMENT OF NEWS PEOPLE April of 2017 International Trade – STATEMENT INFORMATIVE (DANE)
                                                                                                                                   Study of Standard and Poor's

Challenges Towards a More Competitive Country
January 2018
National Planning Department www.dnp.gov.co
Growth Dynamics
   The growth dynamics of our country allowed the middle class to increase in the last decade.

                                 60

                                 50      49,7
                                                   47,9   47,4
      Population Evolution (%)

                                                                    45,0
                                                                                                42,0
                                 40                                                                       40,3                                                         39,3       40,2
                                                                                                                    37,2                                     38,2
                                                                                                                               37,0         36,8      37,2
                                                   34,3   34,3      35,2                        34,4      34,4      35,6       34,1
                                         32,5                                                                                               32,7      30,6
                                 30                                                                                                                          30,5      30,5       30,9
                                                                                                                                                      29,6   28,5
                                                                                                                                            28,1                       27,8       27,0
                                                                                                                               26,5
                                                                                                                     24,8
                                                                                                          23,2
                                                                                                21,7
                                 20
                                                                    18,1
                                         16,3      16,4   16,8

                                 10

                                                                    1,7                         1,9       2,1        2,4       2,4          2,4       2,6    2,8       2,4        1,9
                                         1,5       1,4    1,5
                                 0
                                  2001          2003             2005             2007                 2009                 2011                   2013             2015                 2017
                                                                                                      Years
                                                                           Poor          Vulnerable           Consolidated           High
                                                                                                                                                                              Source: DANE, DNP, MCIT.

Challenges Towards a More Competitive Country
January 2018
National Planning Department www.dnp.gov.co
Increase in Public Investment
     Economic growth allowed public investment to be multiplied by 6 in the last fifteen years. However, the
     investment budget 2015-2016 decreases 11%, explained by the lower resources of the Nation(16%)*

                                       48
                                                                                                                                                                 44,5      45,4
                                       43                                                                                                          43,6
                                                                                                                                                                                          40,6
                                                                        Public investment
          Investment (billion pesos)

                                                                                                                                            38,1
           National General Budget

                                       38                                                                                                                                      11%
                                                                        was multiplied x6                                         32,9
                                       33
                                                                        from 2000 to 2015
                                       28
                                                                                                               24,7
                                                                                                                          25,2
                                       23                                                              21,4
                                                                                               18,1
                                       18
                                                                                       15,0
                                       13                                       12,6
                                                   11,5   10,6           11,2

                                       8                         9,0
                                            7,6
                                       3
                                            2000   2001   2002   2003    2004   2005    2006    2007    2008    2009      2010      2011      2012        2013     2014     2015      2016
                                                                                                       Years
                                                                                                                                                                                                 Source: DNP
                                                                                                               *the Impact of the fall in the price of oil affected the revenues of the National Government

Challenges Towards a More Competitive Country
January 2018
National Planning Department www.dnp.gov.co
Public Investment
   The main investment sources have also grown in recent years.
    Investment Sources 2002-2019

                                                                                                                                                                         $137,4 BILLIONS (COP)
       (Thousand million pesos)

                                         286%                  Investment increased from
                                                               2002 to 2015
                                                                                                                                                                                 in 2019

                                                                                                                                                                                Projected
                                                                                                                                                                           investment growth
                                                                                                                                                                              for 2015-2019:
                                                                                                                                                                                   19%

Royalties- Includes only investment. 2012 - 2016 Budget allocations. 2002 - 2011. Includes Direct and Indirect Royalties (FNR). The term 2015-2016 does not include payment deferrals of 30%
SGP. 2017-2018 PPI PND 2014-2018. 2002 - 2016 Final Distributions
Subnational budget. 2015-2019 Constant rate growth of 1.13%. 2002-2014 Budget implementation
NGB. 2002-2016 Final appropriations. The term 2016 does not include payment deferrals of $3 billion COP. 2017-2019 MGMP. 2002 -2011 Does not include FNR                                     Source: STIP-DNP

Challenges Towards a More Competitive Country
January 2018
National Planning Department www.dnp.gov.co
Public vs. Private Infrastructure Investment

                 Type of Investment (billions of pesos)
                                                                                                                                                    4,06

                                                                       3,33
                                                                                                                               2,86
                                                                                                                                            2,42
                                                                                     2,23                        2,27                               2,40
                                                                                                2,13
                                                          2,17
                                                                                                                                             2,04
                                                                                   1,48
                                                          1,19                                                                 1,17
                                                                                                  0,83
                                                                                                                 0,64
                                                                      0,45

                                                          2008        2009        2010           2011            2012          2013          2014   2015
                                                                                                         Years
                                                                                 Unsolicited Investment/GDP         Public Investment/GDP

                                                                 The Private Infrastructure Investment significantly increased since 2014,
                                                           simultaneously decreased the Public Infrastructure Investment and registered the
                                                                                             lowest level in 2014                                          Source: Infralatm.

Challenges Towards a More Competitive Country
January 2018
The Public Resources are Insufficient
Providing new infrastructure to meet all needs remains a pending task

                                                                                                 It is necessary to reconsider the usual models and
                                                                                                   use more efficient mechanisms, such as private
                                                                                                                      investment.
                                    TIC                       89%                     11%
                                                                                                    •   In some sectors private investment
   Investment Sectors

                                Tansport          39%                     61%                           represents a high percentage: TICs and
                                                                                                        Mines & Energy.
                        Mines and Energy                54%                     32%                 •   This participation should be broadened in
                                                                                                        other sectors: Water & Sewage and
                        Water and Sewage 10%                        90%                                 Transport.
                                                                                                    •   And also extended to other sectors
                                           0%     20%       40%     60%         80%       100%          without this type of participation: Health,
                                                           Investment (%)                               Education and Jails.
                                                Private Investment (% total investment)
                                                Public Investment (% total investment)

                                                                                                                                             Source: DNP, 2015

Challenges Towards a More Competitive Country
January 2018
Concessions in the Past
         Comparing road concessions 1993-2010

                                                           Average fiscal cost of
                Average number of                              renegotiations                 Average time of additions
             concession renegotiations                      (constant USD, 2009)                      (years)
                                                         266,8                                6,3
              20,5

                                4,8              3,3                                47,2
                                                                      28,9                                 0,8             0,9

          Colombia             Peru             Chile   Colombia     Peru           Chile   Colombia       Peru          Chile

     •     The average cost of renegotiations is equivalent to 280% of the initial cost of the contract.
     •     In 25 concessions assessed in Colombia, there have been 430 changes in contracts, with a fiscal cost of
           USD $56,000 billion and 131 additional years.

                                                                                                                  Source: DNP estimations.

Challenges Towards a More Competitive Country
January 2018
Basic Advantages of the PPP Scheme
  PPP is addressed as a mechanism to achieve the competitiveness required by the country.

                                  Since the 80s, the country has structured several public-private concessions.
                                  However, the former scheme had serious problems that PPP Law improved:

                                  WHEN THE SERVICE IS NOT THE                             WE ONLY INVEST IN MATURE
                                  EXPECTED, IT WON´T BE PAID FOR                          PROJECTS
                                  PPPs facilitate the provision and                       Proper structuring of projects in terms
                                  maintenance of infrastructure within                    of studies, risk analysis,
                                  established parameters of availability                  socioeconomic assessment and
                                  and quality.                                            justification of the type of contract

                                   CONSTRUCTION FINISHED ON TIME
                                                                                          REALISTIC PRICES
                                   There are no advance payments.
                                   These start when the infrastructure is                 Additions are limited to 20% of the
                                   available, in accordance with the                      contract value (CAPEX and OPEX).
                                   compliance of service indicators.

Challenges Towards a More Competitive Country
January 2018
PPP Law in Colombia
  The country ranks first for its ability to develop PPP since the introduction of the Law according to Infrascope 2017

                                     Ability to develop PPP Projects                                                                                                                                                                                            Colombia’s growth in the Ranking
                                                                                                                                                                                                                                                       80
                                                                                                                                                                                                                                                                                                                  Decree 063:
             80                                                                                                                                                                                                                                                                            Law           Decree    Water and
                                                                                                                                                                                                                                                                                           1508          1467
             70                                                                                                                                                                                                                                        75                                                           Sewage
                                                                                                                                                                                                                                                                                                                                      74

                                                                                                                                                                                                                                                                                                                         --------------
             60
                                                                                                                                                                                                                                                       70
             50
     Score

             40

                                                                                                                                                                                                                                               Score
                                                                                                                                                                                                                                                       65
             30
             20                                                                                                                                                                                                                                        60                                            61
                                                                                                                                                                                                                                                                                    59,6
             10
             0                                                                                                                                                                                                                                         55                 55,3
                  Colombia

                                                        Peru

                                                                                   Uruguay
                             Chile

                                                               Mexico
                                                                        Honduras

                                                                                             El Salvador
                                                                                                           Nicaragua

                                                                                                                                                                                        Dominican Republic
                                     Brazil
                                              Jamaica

                                                                                                                       Guatemala
                                                                                                                                   Costa Rica

                                                                                                                                                                                                                                   Venezuela
                                                                                                                                                Paraguay

                                                                                                                                                                               Panama

                                                                                                                                                                                                             Argentina
                                                                                                                                                                                                                         Ecuador
                                                                                                                                                           Trinidad & Tobago                                                                           50
                                                                                                                                                                                                                                                                   46,5
                                                                                                                                                                                                                                                       45
                                                                                                                                                                                                                                                         2008       2010         2012             2014            2016                    2018
                                                                                        Country                                                                                                                                                                                     Year                 Score

                                                                                                                                                                                                                                                                                                                     Source: Infrascope 2017

Challenges Towards a More Competitive Country
January 2018
Key findings– Infrascope 2017

            Category findings                   Rank    Country   Score/ 100              *Score

                                                                                        MATURE
    1. Regulations                               =1    Chile         91
                                                                                         (80-100)
                                                                                       DEVELOPED
    2. Institutions                              =4    Jamaica       75
                                                                                          (60-79)
                                                                                        MATURE
    3. Maturity                                  =1    Chile         90
                                                                                         (80-100)
    4.Investment and business                                                          EMERGING
                                                =10    Mexico        57
    climate                                                                               (30-59)
                                                                                       EMERGING
    5. Financing                                 4     N/A           59
                                                                                          (30-59)
                                                                     74                DEVELOPED
    Infrascope 2017 overall score                =1    Chile
                                                                                          (60-79)

   Only six countries (Chile, Colombia, Ecuador, Honduras, Jamaica and Mexico) align the screening and
   selection of PPP projects with priorities established in national infrastructure plans.

                                                                          Source: Evaluate the environment for public-private partnerships for Latin America and the Caribbean– Infrascope 2017

Challenges Towards a More Competitive Country
January 2018
Colombia, Pioneer in Unsolicited Proposals
  The scheme for formulating unsolicited proposals has drawn the confidence of private companies, which
  have submitted more projects in Colombia than in other countries with this figure.

                                                               140
                                                                          121
                                     Anual Unsolicited Proposals
                                                               120

                                                               100

                                                                   80
                                              Average

                                                                   60               48
                                                                   40
                                                                                               20         18
                                                                   20
                                                                                                                      2
                                                                    0
                                                                        Colombia   China   Republic of   Chile   South Africa
                                                                                             Korea
                                                                                             Country

                                                                                                                                Source: DNP estimations.

Challenges Towards a More Competitive Country
January 2018
Timing: PPP Projects vs. Public Works
  PPP compared with public works structuring takes longer time, but construction time is shorter and incur in less
  overruns (15% - 50%)*.

                                                  80%   73%
                   Total evaluated projects (%)

                                                  70%

                                                  60%                                 53,30%
                                                  50%

                                                  40%                                                                               33%
                                                  30%
                                                                 22%
                                                                                                                                                 18%
                                                  20%
                                                                                                  11,60%
                                                  10%

                                                  0%
                                                        United Kinqdom                      Australia                                    México
                                                                                            Country

                                                                         overcharge (TPW)      overcharge (APP)

                                                                                               * Information based on data from the UK, Australia and Mexico - Reference Guide for PPP, World Bank
                                                                                                                                                                                         and PPIAF
Challenges Towards a More Competitive Country
January 2018
2
Public Private Partnerships
Regulatory Framework and         CONTENT
     Project Portfolio

                               Colombia’s
         January, 2018
          dnp.gov.co          Infrastructure
                                  Needs
What do we Need to Move Forward in the Transport Sector?
 COP$208 billions are needed for the Intermodal Transport Master Plan (PMTI), by 2035.

                           Red PMMTI- 2035

                                                           Road network intervention         COP $182
                                                           19.500 km                          billions

                                                           Airport construction
                                                                                          COP $16 billions
                                                           31 Airports

                                                           Road network rehabilitation
                                                                                          COP $10 billions
                                                           1.800 km

                                                                 Rating of the LPI          COP $208
                                                             International (LPIi) 2016
                                                                                             Billions
                                                                   Position: 94
                Capital              Road Network 2015
                                     Road Hired
                                                              Similar to Countries like
                Municipality
                                     Road Project PNT           Moldova, Togo and
                                     River Network
                                                               Dominican Republic
                                                                                                     Source: DNP estimations.

Colombia’s Infrastructure Needs
January 2018
What do We Need to Move Forward in the Transport Sector?
 COP$8,8 billion are needed for the River Master Plan, by 2035

               River projects                                                              River Master Plan
                                                                      Amazon River Basin
                                                                                                           COP $5,4 Billions
                                     River Network                    4 Projects
                                     Total 24.725 km
                                                                      Orinoco River Basin
                                                                                                           COP $2,5 Billions
                                     18.225 Navigable kilometers      4 Projects
                                     5 River Basins
                                                                      Atrato River Basin                      COP $76,364
                                     1% of the current cargo is       1 Project                                 Millions
                                     carried by river
                                                                      Magdalena River Basin                  COP $407,914
                                     The River Master Plan (2013-
                                                                      3 Projects                               Millions
                                     2015) seeks the development
                                     of 5 factors:                                                           COP $346,007
                                                                      Pacific River Basin
                                     Infrastructure, Promotion,       1 Project                                Millions
                                     Operation, Financing and
                                                                    Objectives by 2035:
                                     Institutional development                                              COP $8,8 Billions
                                                                    - Mobilize 5 million passengers
                                                                    -19 millions ton per year

                                                                                                 Source: Plan Maestro Fluvial Colombia 2015

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Energy Sector?

  COP$4,3 billions are required to achieve 100% coverage

                           Access to Electricity                    The indicative electricity expansion plan
                       (99,7% Urban – 85,7% Rural)                          Universal Coverage (100%)
                           20% Growth since 1995
                                                                        Transmission and                COP $4,3
                                                                        distribution investment          Billions
                                                   95.48%   96.7%
                                     91.85%
                           87.38%

      76.10%

                                                                                                  445 Municipalities
                                                                                                  must attain the goals
                                                                                                  to close the gaps

                                                                                                            Source: DNP estimations.

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Water Sector?
                                       Water Supply Coverage
        Water supply coverage – 91%                              2030
          (97% Urban – 73% Rural)
                                                                 - Universal Coverage (100%)
              13th position in Latin                             - Reduction in water losses
                     America
              Average coverage in                                - PWTP
               Latin America: 95%                                                    COP
                                                                   Investment        $29,2
                                                                                    Billions
              94% Urban Population
              42% Rural Population
                                                               ✓ Construction of treatment plants
             SAFE DRINKING WATER                                 for drinking water.
                                                               ✓ Investments aimed at reducing
                                                                 losses (30%)
         43% Average water losses
                nationwide.                                    ✓ Reducing urban-rural gap
       (Llano and Caribbean regions
         have the higher % of water
                   losses)
                                                                                        Source: DNP estimations.

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Sewage Sector?
                                        % Urban domestic waste water
                                                 treated                 2030
               Sewage coverage                                           - Universal Sewage Coverage
            (91% Urban – 70% Rural)                                      (100%)
               12th position in Latin                                    - Waste water Treatment (100%)
                     America

                                                                                            COP $14,2
                                                                         Investment
           Only 36% of urban waste                                                           Billions
               water is treated
                6th position in Latin                                  ✓ Construction of waste water
                     America                                             treatment plants in Colombian
                                                                         basins
                                                                       ✓ Universal Sewage Coverage
                                                                         100%

                                                                                              Source: DNP estimations.

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Sewage Sector?

     Percentage of municipalities in                                     2030
     each department that dispose
     of their solid waste adequately                                    • Universal Sewage Coverage (100%)
                                                                        • Clousure of gaps in urban and rural
                                                                          collection coverage
           Cleanliness coverage
        (97,8% Urban – 21,9% Rural)
                                                                                Investment    $3,3
                                                                                              Billions
         166 unauthorized disposal
                locations
                                                                        ✓ Target 20% utilization in NDP to
                                                                          2018
             17% used waste
     (of 11.6 million tons per year in                                  ✓ Projects of energy generation
               the country)                                               through waste
       Below countries in the U.E.       More than 90%                  ✓ Regulate scheme of inclusion of
      (average used waste U.E. –         Munitipalities
                                                                          recyclers to the scheme of the
                    67%)                 Between 60% and 90%
                                                                          service
                                         Municipalities

                                         Less than 60% Munitipalities

                                                                                                   Source : delaurbe

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Housing Sector?
                                                                                      410.000 Family Subsidies for
                                                                                      Social Interest Housing (VIS)                   COP $7,7
                                                                                      Delivered by Fonvivienda,                        Billions
   Colombia has a housing                                                             CCF and Caja Honor
   deficit of 3 million
                                                                                      138.000 Credits for financial                      COP
   Quantitative housing                                                               closure VIS                                        $17,3
   deficit: 9,4% (1,27                                                                Credits of FNA and BECH                           Billions
   Million housing)
                                                                                      99.000 Credits for NO VIS                          COP
   Qualitative housing                                                                home buying                                        $12,5
   deficit: 15,3% (2,08                                                               Credits of FNA and BECH                           Billions
   Million housing)
                                                                                      Saving contributions of 240.000
                                                                                      households for financial closure                COP $53
                                                                                      Include savings and severance                    Billions
                                                                                      payments.

                                  Total deficit
                                                                                                                                         COP
                                  Quantitative deficit                                                                                   $90,5
                                  Qualitative deficit
                                                                                                                                        Billions

                                                         Abbreviations: CCF: Cajas de Compensación Familiar. Caja Honor: Caja Promotora de Vivienda Militar y
                                                              de Policía. BECH: Bancos Especializados en Créditos Hipotecarios. FNA: Fondo Nacional del Ahorro.

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Health Sector?
  Hospital beds (per 1000 people), international standard*

      3,50                                                                                                                                                                                              6
      3,00                                                                                                                                                                                              5
                             81.548 beds                                                  COP $30,09
      2,50                 To achive world
                                                                                                                                                                                                        4                                      Global average: 3,3
                                                                                          billions***                                                                                                   3
      2,00                    standard                                                                                                                                                                                                  1,61
                                                                                                                                                                                                        2
      1,50                                                                                                                                                                                              1
      1,00                                                                                                                                                                                              0
      0,50
         -
                                                                                           Norte de…
                                                                                Guainía

                                                                                                                                                                                            Atlántico
              Vaupés

                                                                                                                                   Risaralda
                                                              Nariño

                                                                                                       Valle del Cauca

                                                                                                                                               Bogotá D.C

                                                                                                                                                                                    Cesar
                                                   Casanare

                                                                       Tolima

                                                                                                                         Bolívar
                       Cauca

                               Putumayo

                                          Boyacá

                                                                                                                                                                        Magdalena
                                                                                                                                                            Santander
                                                                                                                                                                                                            Standardize (maintenance, upgrading
                                                                                                                                                                                                                                                      COP $17,4
                                                                                                                                                                                                            and expansion) of existing public
                                                                                                                                                                                                            network.                                   Billions*

      Public hospitals: average age of 42 years and about 64% of                                                                                                                                            PBI 2014 – 2015 estimated requirements     COP $7,9
      the built-up area has fallen into disrepair. **                                                                                                                                                       for                                         Billions
      Departments and districts define investment in Biennials
      Investment Plans: PBI 2016-2017.                                                                                                                                                                                                                COP $55,4
 *Source: World Health Statistics 2014 OMS
                                                                                                                                                                                                                                                       Billions
 **Source. BID “Situación Hospitales Públicos Colombia 2013/14” Astorga, Cueto y Muñoz.
 *** MSPS Exercise: beds by thousand 2015 and estimated cost, DNP-DDS estimations - assuming 82 mts2, investment of USD$1.500/bed, according to the assumptions of
 the BID study.
Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in the Education Sector?
    Cities with more class deficits                                                                  Total deficit: 51.134 classrooms
                                                                                                     2030
      Bógota                                        9.219
                                                                                                     - Construction of 51,134 classrooms
   Medellín                 3.618                                                                    (100% of the deficit)

         Cali       2.196
                                                                                                                                               COP
                                                                                                                   Investment                  $7,2
     B/quilla       1.749                                                                                                                     Billions
                                                                                                     2018
     C/gena         1.713
                                                                                                     - By 2018 a classroom infrastructure
                0      2.000        4.000   6.000   8.000 10.000                                     intervention is required to implement
                                                                                                     the “Complete School Day” program in
                                                                                                     232 municipalities*
   The Government invested in the
   school infrastructure program:                                                                    - Construction of 30.680 classrooms
   2015: $623.370 Million pesos                                                                      (60% of deficit)
   2016: $350.000 Million pesos                                                                                                 COP
                                                                                                              Investment       $3,95
   Finalized 2017: 7.892 classrooms will be
                                                                                                                              Billions
   pending to complete the 30.693 plan
   charted by the Ministry of education                                                                                          Source Ministerio de Educación de Colombia
                                                                   *This estimate is made assuming the construction needed to ensure a standard of 37 students per classroom.

Colombia’s Infrastructure Needs
January 2018
What do we Need to Move Forward in Justice Infrastructure?
                                                          Diagnosis and Projection of Capacity and Legal Status of the PPL1993-2019

                 Tousands of Peoble Deprived of liberty

                                                               Condemned
                                                               Trade Unions
                                                               Capacity
                                                               Overcrowding (%)

                                                                                                                                                            Overcrowding (%)
                                                                  Prison quotas                                           National Development Plan goal-
                 To meet global                                                                COP $4,58
                                                                  To completely overcome                                  Reduce the prison overcrowding
                    standards                                                                   Billions
                                                                  overcrowding                                            from 52.9% (2014) to 45.9% (2018)

                                                                                                            Source: Política Penitenciaria y Carcelaria en Colombia, Documento CONPES

Colombia’s Infrastructure Needs
January 2018
3
Public Private Partnerships
Regulatory Framework and          CONTENT
     Project Portfolio

                              PPP Law – Legal
         January, 2018
          dnp.gov.co            Framework
PPP’s Legal and Regulatory Framework - Law 1508 / 2012
                                             The law applies to all sectors in which the provision of infrastructure and its
                             All Sectors
                                             related services are needed.

                        Capacity &           Seeks to attract long term investors with enough financial capacity, who will
                        Commitment           not only construct the infrastructure but also operate and maintain it.

                      Service Payment        Introduces the concept of payments linked to availability and level of service.

                            Incentives for
                                             The law includes a regulatory regime applicable to unsolicited proposals,
                              unsolicited
                               Proposals
                                             involving the appropriate incentives for their development.

                     Proper structuring      The law reinforces the proper structuring of projects with regard to studies, risk
                                             analysis and includes the concept of value for money.
                             Budgetary       The law contains changes in the budgetary treatment regarding: future
                             Treatment       reserves for PPP national and territorial projects.
                            Institutional    The law clarifies the roles and functions of the entities participating in the PPP
                            Organization     project cycle.

                            Information      A data base to register the PPP Projects is created. (Managed by the NPD).

                             Temporary       The infrastructure reverts to the public sector at the end of the concession
                             Contracts       period. (30 years max)                                                               Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
PPP Key Issues
                        BEFORE- LAWS 80/93 and 1150/07                                                NOW- LAW 1508/12
                  Advances were granted in concessions                              There are not advance payments

                     Public                                                            Public
                    Contrib                                                            Contrib
                       .    Constructio     Operation and                30 Years        .      Constructio   Operation and                     30 Years
                            n               Maintenance                                         n             Maintenance
                  The payment is made irrespective of compliance with the service   Payment is made according to the performance of the
                                                                                    service
                  No maximum term                                                   Maximum term : 30 years
                  Law 80/1993: Budget additions of maximum 50%                      Additions are limited to 20% of the contract value (CAPEX and
                  Law 1150/2007: Maximum term additions of 60%                      OPEX)
                  The payment was made for construction works                       The payments are linked to the services provided by the
                                                                                    infrastructure
                  The award process started with the opening of the bidding         A stage for prequalification is permitted prior to the bidding
                  process                                                           process
                  There were no requirements to analyze the best way to implement   The law requires to analyze and justify the way to implement the
                  the project.                                                      project (PPP or Traditional Procurement)

                  No difference was made between who financed and who               The requirements are oriented to enabling: legal capacity, ability
                  constructed.                                                      and experience in financial investment or project structuring and
                                                                                    development
                  The projects were not designed for financial and institutional    It encourages the attraction of institutional and financial investors
                  investors.

                  Only public proposal projects were allowed                        They allow and encourage unsolicited bids (unsolicited proposals)

                                                                                                                                 Source: Law 1508 of 2012
PPP Law – Legal Framework
January 2018
Legal and Regulatory Framework - Contents of the PPP Law
                                                              I.   General Provisions
                       1.    The law applies to all sectors– minimum      3.    Limit to additions and extensions of contracts
                             project investment: USD 1.7 million.               with public budget– 20%
                       2.    Maximum term including extensions– 30 years* 4.    Nation payments subject to service availability

                                  II. Public proposal PPP                          III. Unsolicited Proposals PPP
                                   Public Idea:                                    Private idea:
                             Resources:                       Resources:                              Resources:
                             Private and/or Public            Private + max. 20-30% Public            100% Private

                             Selection Process:               Selection Process:                      Selection Process:
                             Public Bidding                   Public Bidding                          Abbreviated selection

                                                        IV. PPP Project’s common provisions
                       1.    Project funds are managed through Special         3. Proper budget management to guarantee
                             Purpose Vehicle.                                  future payments.

                       2.    Creation of a new database of PPP projects.       4. The infrastructure reverts to the public sector.

                                                                                          * This term can be extended only if there is a previous favorable concept from CONPES
                                                                                                                                                    Source: Law 1508 of 2012
Colombia’s Infrastructure Needs
January 2018
Normative of Public Private Partnerships Law 1508/2012

          Regulatory Decree 1082/15                Resolution DNP-3656 /2012                       Agreement 038/16

     It compiled decrees 1467 of 2012, 2043        Establishes parameters for the
         of 2012, 1610 of 2013, 1026 of 2014,    evaluation of the PPP mechanism                VIABILIZATION AND APPROVAL
             1553 of 2014 and 63 of 2015              as a modality of project                  REQUIREMENTS OF INVESTMENT
          establishing specific dispositions                 execution.                      PROJECTS UNDER THE PPP SCHEME -
        related, among other aspects, with:                                                                ROYALTIES
                                                                                                  Investment projects that are
     •    The nature of the bidders in Public           Resolution 1464/16                   formulated under the Public Private
          Private Partnership projects,                                                     Partnership scheme involving total or
     •    The availability, service levels and    The NPD will be responsible for a        partial resources of the General System
          quality standards,                      filter in the pre-feasibility stage of        of Royalties - SGR, can only be
     •    The definition of public                all PPP projects. The requirements       submitted to the corresponding OCAD,
          contributions,                          and parameters to be complied                  once is obtained the previous
     •    Public and Unsolicited proposals for    by the public entities responsible       concepts and approvals established in
          the development of projects,                for the development of PPP             Law 1508 of 2012 and its regulatory
     •    The prequalification system,           projects requested to the concept               decrees, without prejudice to
     •    Treatment of risks,                     provided for in article 206 of Law             compliance with the general
     •    Approvals of the projects and          1753 of 2015, particularly if it meets         requirements for feasibility and
     •    The implementation of Public            the conditions that allow to infer          approval of the General System of
          Private Partnerships in the drinking     that could be developed under                         Royalties - GSR
          water and basic sanitation sector.                   PPP scheme.
                                                                                                                   Source: Law 1508 of 2012
PPP Law – Legal Framework
January 2018
Articles of the National Development Plan - NDP 2014-2018
Art. 32: Other Financing Sources for Transport Systems.

                                                            The Nation and its decentralized                                        The co-financing of the
                                                              entities may co-finance PPP                                           Nation may be up to 70%
                                                                        projects.                                                   of the lowest value
                                        Capital contributions, in                                                                   between the
                                        cash or in kind
                                                                                                                                    disbursements of public
                                                                                                                                    resources requested for
                                                                                                                                    the execution of the
                                                                                                  The Ministry of                   project and the
                   Development of Urban                                                         Finance and Public
                 Public Service Systems for                                                           Credit
                                                                                                                                    estimated value of the
                  Passenger Transport or                                                                                            cost and financing of the
                 some of its components or                                        Will review                                       project design, pre-build
                      functional units
                                                                                                                                    and build activities.

                                                              Compliance with what is               They may not be used for
                                                             established in paragraph 3            the purchase of vehicles or
                                                                of article 26 of Law               rolling stock (except for rail
                                                                    1508/2012.                          transport projects).

                                                                                                                                              Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Articles of the National Development Plan - NDP 2014-2018
 Art. 37: Amend Article 5 of Law 1508/12
 Increase the development of PPP projects of public proposal by reducing the contributions of
 resources by the state entities

                               Contributions in kind by the competent state entity of the national order

                   •   Entities will be able to deliver a                                              • Territorial entities must identify
                       public     infrastructure      (jail,   •   The entities may deliver their        land for use in PPP projects and
                       hospital, school, etc.) in poor             property to contribute to the         deliver them to national entities.
                       conditions but with a strategic             financial closure or decrease the
                       location (areas of high valuation),                                             • It is necessary to have the
                                                                   public contributions.                 regulation of the use of land at the
                       so that a new infrastructure is
                       constructed,     operated       and                                               territorial level as a contribution to
                       maintained in another location.                                                   the projects.

                                                                                                                                        Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Articles of the National Development Plan - NDP 2014-2018
  Art. 38: Unsolicited proposals that require disbursement of public resources.

                                                               Tool
                               State entities may contribute up to 30% of the value of the estimated
                            investment budget of the project, except for highway road projects where
                                                contributions can not exceed 20%.
                                                             Project
                            Promote and facilitate the use of unsolicited proposal PPP projects in other
                                                  sectors than the road sector.

                                                                                                           Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Articles of the National Development Plan - NDP 2014-2018
 Art. 206: Evaluation and prioritization of PPP projects

                                                                 Tool
                             The NPD and planning offices will evaluate and prioritize PPP projects at an
                             early stage to give impulse to those that are priority for the development of
                                                         public infrastructure.
                                                               Project
                              Strengthen the role of the public sector in reviewing unsolicited proposals,
                            moving from a validator role to one of the leaders in the process, ensuring that
                            the main public interest is at the heart of the development of these Proposal.

                                                                                                               Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Law 1882 / 2018
   Modifies procurement, infrastructure and APP standards

             Tender for public works            Infraestructure projects                             PPP

        Strengthen transparency in          To facilitate infrastructure projects,    Strengthen the viability of social,
           hiring, changes in the         mainly archaeological and property           urban and territorial entity PPP
     presentation of the offer and the                   acquisition.                projects, as well as the procedure
       term to correct, implements       It establishes the need to incorporate           before the termination of
      “pliego tipo”, expressly allows       infrastructure projects as reserved      concession and PPP contracts as
     the experience among privates        areas into land use plans of territorial   a result of absolute nullity. The law
            parties and limits the                          entities.                      allows mixed economy
       responsibility of the financial     Also, the permit for archaeological             companies, public utility
         controller. In addition, the     intervention is delivered to the head        companies and industrial and
       responsibility of the advisors,    of the contractor or concessionaire,         commercial enterprises of the
       consultants and controllers is     accompanied by the archaeologist               State their participation as
         defined, according to the            with the supervision of “Instituto          suppliers or contractors in
     damages that are generated by           Colombiano de Antropología e             regulated processes under Law
         breach of the obligations                         Historia”.                               1508/12
       derived from their contract.

                                                                                                           Fuente: Ley 1882 de 2018

PPP Law – Legal Framework
January 2018
PPP Basic Scheme
                                                                    State Agency

                                                                              Long-term contract based
                                   Disbursement of                            on service delivery
                                   public funds

                                                                   Private Investor            Services    Users
                        Banking
                                                                                  Resource
                                     Creditors                                    Management
                                                         Debt
                        Capital
                        Markets                                             SPV
                                                                                                  Operating
                                                         Stock                                    revenue
                                  Shareholders

                                                                 Payments    Construction
                                         Operating                                              Construction
                                                                 O&M         payments
                                         Agreement                                              contract

                                              Operator             Coordination          Constructor

                                                                                                                   Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Public Proposal PPP Project – Flowchart
                  Conceptual Idea of
                     the Project

                                                                                        Application concept             Assessment of
                     Feasibility Studies                    Prefeasibility                   DNP: Project                social and                           Previous
 Prioritization                                      +                                  development by PPP    +        economic issues           +         Concept - VBA *
                                                                                           (Law 1753/15)*   Positive                          Positive

                                                                                                                                                         * According a new
                                                                                                                                                         presidential regulation,
                                                                   With Public Resourses                                                                 a previous concept has
                                                                                                                                                         to be issued by Virgilio’s
                            Technical, Financial and               Financial reviewed by
                                                                                                                                                         Barco Urban Renewal
                               Legal Structuring                    Public development
                                                                                                                                                         Agency in the case of
                                                                    Banks – Art 27 / 1508
                                                                                                   Central                First review Ministry of       projects               for
                                                                                                government                 Finance then NPD              administrative    offices
                                                                                                 investment                                              and public buildings.

                         1. Risk analysis – Ministry of Finance                                                                                            Subnational Public
                          2. Assessment of PPP option - NPD                                                                                                Entities
              3. Financial and contractual clauses - Ministry of Finance
                                                                                                                             First is reviewed by
                                                                                                                           Ministry of Finance –
       * Res. 1464 of 2016 establishes the requirements and                                      Without Central
                                                                                                                            then the respective
       parameters that must be met by public entities to request                                  Government
       the concept                                                                                                         planning department
                                                                                                   Investment
                                                                                                                                                              Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Public Proposal PPP Project - Flowchart

                          1. Risk analysis – Ministry of Finance
                           2. Assessment of PPP option - NPD
                   3. Financial and contractual clauses - Ministry of
                                         Finance

                                                                                                 Request of fiscal
                                                                                            endorsement and approval
                                                                                                of annual budget
                                                                                                  commitments
                        Public Contract                 PPP                                         CONFIS -
                                                                          Requires Public   Decree 1082 Art. 2.2.2.1.11.6
                                                                            Resources            and 2.2.2.1.11.7.

                                                       Does not
                       Opening of the               Requires Public
                       bidding process                Resources

                                                                      Opening of the PPP
                                                                                                           Royalties as agreed
                                                                       bidding process

                                                                                                                            Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Unsolicited Proposals PPP Project - Flowchart
                                                                                                                          THE ORIGINATOR HAS
                                      Competent entity must register the
                                           proposal in the RUAPP*                                                               BENEFITS
                                         ( 5 days after receiving the
            Presentation of                       proposal)
             the proposal                                                             Concept
                                                                                       (Max. 3                                 Proposal Rejected
            (Pre-feasibility
                stage)                                                                months)
                                       Application concept DNP: Project
                                      development by PPP (Law 1753/15)
                                                                                                                                  Causes of rejected
                          Favorable
                                                                                                                • Not enough public interest
                                                                                                                • It needs more public resources (>20-30%)
          Acceptance of Pre-feasibility                                                                         • There are a current public work or a concession in
          and acceptance conditions.                                                                              place.
                                                          MHCP and NPD review and issue
         Project preparation, feasibility                 concept (PPP with Co-financing of
                                                          the Nation ) or the planning unit of                                                      Project
            stage (Max. 24 months)                                                                                                                rejected
                                                          the territorial entity (PPP without Co-
                                                          financing of the Nation)                                                               There is no
                                                                                                                                                commitmen                   Acquisition
                                                                                                                                                t of any kind                of studies
          Proposal Assessment (6 months)
                                                                                                                                                   with the
         (The agency in charge may need
                                                                                                                                                    private
     complementary studies and must analyze
                                                   Favorable                                                                                       investor
      them in an additional term of 3 months)                                                          Negotiation arrangements
                                                                                                              (2 months)
         Project rejected
                                                                                                                                                                Favorable
                   Acquisition          Must have a public hearing to third parties and
                    of studies                                                                                                  *This requirement is the responsibility of public entity
                                        authorities within one month of the delivery of
                                                                                                 Proposal’s originator
                                                       Feasibility studies.                                                                                     Source: Law 1508 of 2012
                                                                                                 Relevant Public Entity
PPP Law – Legal Framework
January 2018
Unsolicited Proposals PPP Project - Flowchart
                                                                                                                                THE ORIGINATOR HAS
                   (National entities) Is presented to                                                                                BENEFITS
                    the Sectoral Ministry for review
                    and concept of the Council of                                  They must have the approval
                               Ministers.
                                                                                   of future appropriation, before
                   (Territorial Order entities) Reviews                                  the bidding process
                    and emits concept of feasibility
                       studies on a committee or
                        advisory council of Order

                                                                        Max. 20-30%
   Favorable                                                                                                                         Public Bidding
                                                                      Public Resources                                               (4 - 6 months)

                                                                                                                                    Additional Points
                                                                                                                               3% - 10% (according to the
                                                          Source of                                                               amount of inversion)
      Negotiation arrangements
             (2 months)                                     funds

                                                                                                       Agreement Publication
                                                                         100% Private                   (Appendix included)
                                                                          Resources                        (1-6 months)

                                                                                                                         Third party interested
                                                                                    No third party
                                                                                    concerned
               Projects with an estimated
                                                                                                               Abbreviated Selection Process
               budget of investment or                                    Direct selection
               annual income are 70.000                                                                               (2 - 3 months)
               SMMLV.
                                                                                                                                                      Proposal’s originator
                                                                                                                   Right to improve for the           Relevant Public entity
                                                                                                                originator (10 business days)
                                                                                                                                                            Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
PPP Project Approvals in the Event of Requiring Public Resources of
  National Order
                      APPLIES TO NATIONAL ORIENTATIONS REQUIRING FUTURE COMMITMENTS OF THE NATIONAL GENERAL BUDGET FOR THE EXECUTION OF
                                                                   PROJECTS UNDER APP SCHEME
                                                         ANNUAL LIMIT OF AUTHORIZATIONS, SECTORS AND AMOUNTS

                  1
                                               CONPES prior to the concept           CONPES, prior to the CONFIS           Ministry or institution head
                       CONFIS                  of CONFIS, will define the            concept, will define the sectors                of sector
                                               maximum annual amount for             to grant authorizations and their
                                                                                                                            RESPONSIBLE FOR THE
                                               which authorizations may be           annual distribution (It may be
                                                                                                                           ADMINISTRATION OF THE
                                               granted to compromise the             redefined up to 20% by CONFIS         ANNUAL SECTORAL LIMIT
                  2                            fiscal future commitments for         without    authorization    from      AND PRIORITIZATION OF
                       CONPES
                                               the execution of APP projects         CONPES).                                    PROJECTS

                                                        PREVIOUS CONCEPT OF AVAILABILITY IN THE SECTORAL QUOTE

                  Implementing entity must request prior concept of availability before the Ministry or institution head of sector, to verify if
                  the resources demanded by the project are located within the limits of the sectoral quote.
                                REQUIREMENTS FOR THE APPLICATION OF FISCAL GUARANTEE AND AUTHORIZATION OF FUTURE COMMITMENTS

                                                                The competent entity must submit to
                                                                CONFIS:
                  1                                                                                                                                       4
                        Registry in the BPIN                                             Communication of the Public Credit direction and National
                                                                                         Treasury on financial conditions and contractual clauses.
                  2    Favorable concept of the Ministry or institution head of                                                                           5
                       sector on availability in the sectoral quote.
                                                                                         Approvals or favorable concepts of valuation of contingent
                  3                                                                      obligations and CPP (Article 2.2.2.1.6.1, 2.2.2.1.6.2 and
                       NPD Concept: Future Commitments (Art 26, Ley 1508/ 2012)
                                                                                         2.2.2.1.7.3 of Decree 1082 of 2015)
                                                                                                                                                              Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
PPP Project Approvals in the Event of Requiring Public Resources of
  National Order
                                          GRANT OF TAXATION AND AUTHORIZATION OF FUTURE VIGENCES
                            The CONFIS can grant fiscal guarantee of Future Commitments, consulting the fiscal consistency
                            and the evaluation of the request of the budget contribution and provision of PPP projects public
                            resources.

                            See Art. 26 of the law 1508 of 2012 and Art. 2.2.2.1.2.2 of Decree 1082 of 2015 on the right to
                                                            retribution for functional units.

                               REPROGRAMMATIONS AND MODIFICATIONS TO THE FUTURE EFFECTS OF PPP PROJECTS

                            Entities or institutions may apply to the CONFIS for reprogramming only when it is required to change
                            the period initially approved and that does not imply changes to the total amount and annual
                            distribution authorized. OTHERWISE, A NEW AUTHORIZATION OF FUTURE COMMITMENTS SHOULD BE
                            REQUIRED

                                     TEMPORALITY TO COMPROMISE FUTURE COMMITMENTS FOR PPP PROJECTS
                            The annual quotes authorized by CONFIS to assume commitments of fiscal future commitments not
                            used on 31 December of the year in which the authorization is granted shall expire on that date,
                            except for the specific cases determined by CONFIS.
                                                                                                                                    Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
PPP Project Approvals in the Event of Requiring Public Resources of
 National Order
                         DEVELOPMENT REQUIREMENTS PRIVATE PUBLIC PARTNERSHIP PROJECTS REQUIRING DISBURSEMENTS OF PUBLIC RESOURCES IN
                                                                   TERRITORIAL ENTITIES (TE)

                                     Rules for the development of this type of projects:                             GENERAL DISPOSITIONS
                     1                                            5
                         Only    Public  Private  Partnership          The TE must identify the financing      Contracts entered into under Law
                         projects can be developed consistent          source of the contract in such a        1508 of 2012 must be registered
                         with the objectives of the territorial        way that the current revenues           with the Ministry of Finance and
                         development plans.                            committed to its financing will be      Public Credit and reported in the
                                                                       discounted     from   the     current   Single Territorial Formulary, STF, and
                    2                                                  revenues used to calculate the
                         The TE must prove compliance with                                                     in the Single Public Private
                         the established expenditure and debt          payment       capacity     indicators   Partnership Registry, SPPPR.
                         limits and contingent liability and           established in Law 358/97.
                         contingent liability requirements.        6                                           For the presentation of these
                                                                       Such contracts may not be               projects to the Ministry of Finance
                    3                                                  celebrated during the last year of      and Public Credit, it will be
                         The future revenues committed will            government.                             necessary to have the financial
                         affect the payment capacity defined                                                   validation of one of the public
                         in Law 358/97 and the norms that          7
                                                                       The future commitments that are         entities of second floor or public
                         modify and complement it .                    issued must comply with the current     structuring.
                    4                                                  regulations governing the subject
                         When the project is financed from             matter and the parameters set
                         current revenues of free destination,         forth in this article.
                         they can not be considered as freely
                         available under the terms of Law                               EXCEPTIONAL FUTURE COMMITMENTS FOR
                         617/00.                                                                 TERRITORIAL ENTITIES
                                                                                                                                                Source: Law 1508 of 2012

PPP Law – Legal Framework
January 2018
Exceptional Future Commitments for Territorial Entities
             In the territorial entities, the respective assemblies or councils, at the proposal of the local government, may authorize the assumption
                  of obligations that affect future budgets without appropriation in the budget of the year in which the authorization is granted:

                                                                                                                                    1   2   3   4
            1                                                                                   GENERAL DISPOSITIONS
                 They can only be authorized for
                 infrastructure, energy, communications           The popular election corporation may not grant authorization if the projects are
                 and social public expenditure projects           not in the Investment Plan of the Development Plan or if the TE's borrowing
                 in education, health, drinking water and         capacity is exceeded.
                 sanitation, registered and feasible in the
                 respective project banks.                        It is forbidden the approval of any future commitments, in the last year of
                                                                  government (Governor or Mayor).
            2
                 Future commitments should consult the            The term of execution of any future commitments approved must be equal to
                 multi-year goals of the Medium Term              the term of execution of the project or expense object of the same.
                 Fiscal Framework (article 50 of Law 819
                 of 2003).                                        Projects must be previously declared of strategic importance by the Governing
             3                                                    Councils of the TEs.
                 They must have previous approval of
                 the territorial CONFIS or the institution
                                                                  Within the general strategic part of the current Development Plan of the TE,
                 that does its times.
                                                                  reference should be made to the importance and impact of the project that
                                                                  transcends the governance lifetime.
            4
                 In the case of projects involving national
                 investment, the prior and favorable              The definition of priority works and detailed engineering should be included in the
                 concept of NPD should be obtained.               technical studies. The content of the technical studies is defined in article 2 of
                                                                  decree 2767 of 2012

                                                                                  Consult Law 1483 of 2011 and Decree 2767 of 2012
PPP Law – Legal Framework                                                                                Source: Law 1508 of 2012
January 2018
4
Public Private Partnerships
Regulatory Framework and         CONTENT
     Project Portfolio

         January, 2018
          dnp.gov.co          PPP Projects
Number of Projects by Public Entity
        180
                       165
        160

        140

        120
  Projects

                                          96
        100

             80

             60
                                                         42
                                                                        36
             40
                                                                                       26
                                                                                                       17             16            14
             20                                                                                                                                      12                11               10

              0
                       Agencia        Alcaldía de      Instituto de   Departamento Transmilenio      Instituto     Alcaldía de   Alcaldía de   Alcaldía de Cali,    Secretaría Instituto Distrital
                    Nacional de       Bogotá D.C.   Infraestructura y Administrativo   S.A.        Nacional de      Medellín,    Cartagena,    Valle del Cauca      Distrital de de Recreación y
                  Infraestructura -                 Concesiones de de la Defensoría               Vías – INVIAS-    Antioquia      Bolívar                         Movilidad de Deporte -IDRD-
                         ANI                        Cundinamarca - del Espacio                                                                                       Bogotá
                                                          ICCU          Público -
                                                                        DADEP-

                                                                                   State organization competent

                                                                                   By National Order :

                                           The entities with the most records in the RUAPP are: Agencia Nacional
                                          de Infraestructura (ANI) with 165 projects, Alcaldía Mayor de Bogotá with
                                          96 and Instituto de Infraestructura y Concesiones de Cundinamarca with
                                                                              41.                                                                                                                    Source : RUAPP - Cálculos DNP.
PPP projects
January 2018
Principal Locations PPP Projects
                 Bucaramanga                   10

                          Antioquia            10
      Place of growth

                                Cali            14

                        Barranquilla                16

                           Medellín                 17

                         Cartagena                       23

            Cundinamarca                                                  89

                          Colombia                                                    122

                             Bogotá                                                                     229

                                       0                      50           100              150   200         250
                                                                                 Projects

                                                                   By geographical location:

                                           •   Bogotá, Cartagena, Medellin, Barranquilla and Cali
                                               are the leading cities.

                                           •   Cundinamarca is the leader department with 87                        Source: DNP estimations.

PPP projects
                                               projects in different Sectors.
January 2018
Current Proposal in Bogotá

                   Public Proposals                                     Unsolicited Proposals

                                                              Pre-feasibility                 Feasibility
                                                              Roads, public parking,
                                                                                          4   Public parking
               6   Hospitals (FDN/ Ministry of           29
                   Health)                                    parks
                                                                                          2   Bogotá access

               4   Urban Road (DNP/IDU)
                                                                                          2   Modals exchange center

                                                                                           1 Salitre park

                     The DNP signed an agreement with the Mayoralty of Bogota (Alcaldía Mayor de Bogotá) to
                     accompany the district entities during the evaluation of unsolicited proposals, promoting the
                     development of their technical capacities, by transferring the technical knowledge
                     developed within DNP in structuring and evaluating PPP projects and strengthening the
                     institutional framework required for the management of this type of projects.

PPP projects
January 2018
4.1
Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          Transport
4.1.1

Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          4G Program
Contract value
      First Group 4G                                  Pioneers *                           (Billion of pesos
                                                                                                                           Current
                                                                                                                            status
                                                                                                  2016)
                                                                                                                          Awarded
                                    Girardot - Honda - Puerto Salgar                                  2.4
                                                                                                                          03/06/14
                                                                                                                          Awarded
                                            Mulaló – Loboguerrero                                     2.3
                                                                                                                          05/12/14
                                         Perimetral de Oriente de                                                         Awarded
                                                                                3.2
                                              Cundinamarca                                                                23/07/14
                                        Cartagena - Barranquilla,                                                         Awarded
                                                                                3.0
                                      Circunvalar de la Prosperidad                                                       02/07/14
                                                     Group I - Highways for Prosperity
                                                                                                                          Awarded
                                         Autopista Conexión Norte                                     2.6
                                                                                                                          17/10/14
                                                                                                                          Awarded
                                      Autopista al Río Magdalena 2                                    2.6
                                                                                                                          22/10/14
                                                                                                                          Awarded
                                      Autopista Conexión Pacífico 1                                   3.2
                                                                                                                          15/09/14
                                                                                                                          Awarded
                                      Autopista Conexión Pacífico 2                                   2.6
                                                                                                                          11/09/14
                                                                                                                          Awarded
                                      Autopista Conexión Pacífico 3                                   3.5
                                                                                                                          10/09/14
                   First Group                           TOTAL                                                  25.4
                                 *All With Accredited Financial Closure   Source: ANI, figures provided by the private sector in the financial
                                                                          closure or structuring data when the project does not have financial
                                                                          closure

PPP projects
January 2018
Contract value
    Second Group 4G      Group II – Highways for Prosperity              (Billion of pesos
                                                                                                       Current
                                                                                                        status
                                                                                2016)
                                                                                                     Awarded
                                    Autopista al Mar 1*                           3.4
                                                                                                     03/09/15
                                                                                                     Awarded
                                    Autopista al Mar 2*                             3
                                                                                                     25/10/15
                                                                                                     Awarded
                                     Santana - Neiva*                             3.8
                                                                                                     18/08/15
                                                                                                     Awarded
                                   Rumichaca – Pasto*                               3
                                                                                                     24/07/15
                                                                                                     Awarded
                           Popayán - S/der de Quilichao*                          2.1
                                                                                                     11/08/15
                                                                                                     Awarded
                                  Transversal del Sisga*                          1.4
                                                                                                     28/08/15
                                                                                                     Awarded
                                  Villavicencio – Yopal*                          4.1
                                                                                                     23/07/15
                                                                                                     Awarded
                                 P/ta de Hierro - Palmar                          1.4
                                                                                                     03/07/15
                                                                                                     Awarded
                             B/manga- B/meja - Yondó*                               3
                                                                                                     21/08/15
                                              TOTAL                                        25.2
                        *With Financial Closure
               Second                                 Source: ANI, figures provided by the private sector in the financial
                                                      closure or structuring data when the project does not have financial
               Group                                  closure

PPP projects
January 2018
Third Group 4G
                                                    Contract Value                                   Current Status
                                         Adaptation Fund (Billions of pesos 2016)
                                                                                                        Awarded*
               Bucaramanga – Pamplona*                     1.6
                                                                                                        22/04/2016
                                                                                                         Awarded
                  Pamplona - Cúcuta                        2.2
                                                                                                        19/04/2017
                        TOTAL                              3.8                                      *With Financial Closure

                                                                    Public Proposal,
                                                                                                                  CAPEX* (COP
                                                            With Public Resources (Project in
                                                                                                                    Millions)
                                                                        review )
                                                                  Barbosa – Los Curos                                 1.100.000
                                                                    Ocaña - Cúcuta                                    1.400.000
                                                                  Duitama - Pamplona                                   700.000
                                                                   Sogamoso – Maní                                     700.000
                                                                 Mariquita – Chinchiná                                 600.000
                                                               Zipaquirá – Bucaramanga                                 900.000
                                                                    Pasto - Mojarras                                   700.000
                                                                      Mojarras - Popayán                              2.700.000
                                                                             Total                                    8.800.000
                                                           *Estimated data
                                                                             Source: ANI, figures provided by the private sector in the financial
                                                                             closure or structuring data when the project does not have financial
PPP projects                                                                 closure
January 2018
Unsolicited Proposals
                                   Contract value (Billion
                    Name                                      Current status
                                      of pesos 2016)
                                                                Awarded
       IP Ibagué – Cajamarca*               2.52               15/01/2015
                                                                Awarded
        IP Malla Vial del Meta              3.78               09/04/2015

     IP Chirajará – Fundadores /                                Awarded
                                            6.58               23/04/2015
        Bogotá Villavicencio*
    IP Departamentos del Cesar                                  Awarded
                                            1.95               19/05/2015
           y la Guajira*
                                                                Awarded
       IP Cambao – Manizales                1.58               19/05/2015
                                                                Awarded
               IP Vías del NUS*             3.23               01/12/2015
                                                                Awarded
          IP Neiva – Girardot*              2.32               15/09/2015
                                                                Awarded
        IP Antioquia – Bolívar*             3.35               17/09/2015      *With Financial Closure

                                                                Awarded
       IP Buga – Buenaventura               3.24               19/05/2016
                                                                Awarded
    IP accesos norte a la ciudad
                                            1.42               22/07/2016
          de Bogotá D.C.
        IP Tercer Carril Bogotá                                 Awarded
                                            4.74               18/08/2016                         Source: ANI, figures provided by the private sector in the financial
               Girardot                                                                           closure or structuring data when the project does not have financial
                 TOTAL                                34.71                                       closure
PPP projects
January 2018
4.1.2

Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          Toll Stations
Toll Stations

                             Descriptions
     •Term: < 2 years

     • Equip, operate and maintain toll stations, service
       centers and carry out the collection service of toll
       rates. Adequacy of the Infrastructure for the
       implementation of Traffic Electronic Control Equipment.

               Proposals   Contract Value Current Status

                                             Awarded
                Public         152.523
                                             June 2016

PPP projects
January 2018
4.1.3

Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          Fluvial Projects
Magdalena’s River Navigation Recovery

                                 Descriptions                            Canal de
                                                                         Aproximación
        Between Bocas de Ceniza- Puente Pumarejo
                                                                         Bocas de
                                                                         Ceniza km
        • Term: 10 years                                                 22
        • East Tajamar Reconstruction and Western Tajamar
          Repair, once as CF (INV study)
        • Extension to 210 meters wide between Bocas de
          Ceniza and 2 km upstream                                                                                     Puente
                                                                                                                       Pumarejo K0

                          CAPEX* (COP    Current         Start date
               Proposal
                            Millions)    Status       bidding process*

                Public     $ 914.380    Feasibility      June 2018

                                                                                                             Source : Cormagdalena
                                                                                        *Data, to be defined in the structuring process

PPP projects
January 2018
4.1.4

Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          Airports
Airports

               Proposals                     Airports           CAPEX* (COP Millions)                 Current Status                 Start date bidder process*

                                     International Airport of                                            Awarded
                                                                      287.324**                                                          **Financial Closure
                 Public               Matecaña Pereira***                                                 Nov-16
                                       Airport El Dorado II           1.400.000                          Feasibility                           June 2018
                                 Gustavo Rojas Pinilla, San
                                  Andrés, y El Embrujo de             300.000                          Pre- feasibility                        June 2018
                                       Providencia
               Unsolicited
                                       Airport Cartagena              320.000                       Approval Process                            May1208
                                                                                                       Awarded
                                 Airport Ernesto Cortissoz            532.250**                                                          **Financial Closure
                                                                                                        Dec-14
                             TOTAL                                    2.839.574
                                                                                                                           *Data, to be defined in the structuring process
                                                                                                                                       ** Contract value(Million of pesos)
                                                                           *** PPP Airport El Edén de Armenia y Benito Salas Vargas de Neiva is found declared as desert
PPP projects
January 2018
                                             www.dnp.gov.
4.1.5

Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
                                 Mass and
          dnp.gov.co
                              Strategic Transit
Ring Roads and City Accesses Road
      ALO Street 13 – Autopista Norte

                                   Descriptions
      In order to decongest the entrance and exit of Bogota, and to prevent
      further collapse, it is proposed the construction and rehabilitation of
      several kilometers inside and outside Bogota

                          CAPEX* (COP                        Start date bidding
               Proposal                   Current Status
                            Millions)                              process*
          Unsolicited      2.379.000       Pre-feasibility       June 2019

                                                                                       *Data, to be defined in the structuring process
                                                                                  Source : Agencia Nacional de Infraestructura (ANI)

PPP projects
January 2018
Mass and Strategic Transit
  Avenida Longitudinal de Occidente (ALO) Tramo Sur: Canoas –13 street

                                    Descriptions
      The main objective is to improve the access and departure by
      southwest and to prevent the collapse.

      •    Construction of the driveway 19.5kms between Canoas and
           13 Street
      •    Construction 8kms (Phase I)
      •    Rehabilitate the 11.5kms Between Canoas and Bosa Avenue
           (Phase II)
      •    Bikeway path parallel to the road.

                                                               Start date
                           CAPEX* (Millions    Current        expression of
               Proposals
                             of pesos)         Status       interest by third
                                                                parties*

           Unsolicited        1.000.000       Feasibility      July 2018
                                                                                *Data, to be defined in the structuring process

PPP projects
January 2018
Mass and Strategic Transit
   North accesses Bogotá - Phase I

                                     Descriptions
          The phase 1 involves the part of the project outside Bogotá

          •    Improvement of the existing road and the construction of the
               second road by the seventh street from the 245 to La Caro.
               Re localization of the toll.
          •    Enlargement in two lanes in the west and east lane of the
               North highway between the street 245 and the. Andes toll
               Enlargement in one lane between the Andes toll and La
               Caro.
          •     Construction of the double lane connecting Hatogrande or
               Chia variant, from the north highway to the Cajicá variant.

                                    Contract Value
                      Proposal                         Current Status
                                   (Millions of pesos)

                                                       Awarded
                     Unsolicited       1.225.686
                                                     December 2016
                                                                              *Estimated data

PPP projects
January 2018
Mass and Strategic Transit
North accesses Bogotá - Phase II

                                    Descriptions
           Studies,      design,     construction,     improvement,
           rehabilitation,     environmental       and       property
           management,         administration,     operation     and
           maintenance of Autopista Norte and carrera séptima,
           from 182th Street to 245th Street

                                                            Start date
                            CAPEX*
                                            Current        expression of
               Proposals   (Millions of
                                            Status       interest by third
                             pesos)
                                                             parties*

           Unsolicited     1.500.000       Feasibility    August 2018

                                                                             *Data, to be defined in the structuring process

PPP projects
January 2018
Mass and Strategic Transit
  Transfer station- SETP Sincelejo

                                   Descriptions
       Improve the quality of life and bring the city to economic, social and
       technological development through the Strategic Public Transport
       System.The transfer station has two options (i) A building and a
       basemnet, or (ii) two buildings and two basements

                                                            Start date
                          CAPEX* (Millions     Current
               Proposal                                       bidder
                             pesos)            Status
                                                             process*
                Public        50.000          Feasibility   July 2018

                                                                                *Data, to be defined in the structuring process

PPP projects
January 2018
Mass and Strategic Transit
Transmilenio - 63 and 127 Street

                                Descriptions
     To improve the current mobility conditions of the city of Avenida
     José Celestino Mutis (63 and 127         Street) , through the
     development of road infrastructure that includes exclusively
     mass transportation, private transportation and non-motorized
     modes. This would include:

     • New connections east-west between Bogota and the Region
     • Increase Transmilenio's core capacity
     • Innovative public policy scheme (private vehicle users pay for
     expressway use)

                         CAPEX* (Millions   Current       Start date bidder
   Proposal    Road
                            pesos)          Status             process*
             63 Street      2.000.000
                                              Pre-
     Public     127                                           July 2018
                            2.000.000       feasibility
              Street
          TOTAL             4.000.000
                                                                              *Data, to be defined in the structuring process

PPP projects
January 2018
Mass and Strategic Transit
   Tranvía de Barranquilla

                          Descriptions
     Financing, design, construction, operation and
     maintenance of the Barranquilla Tram Rail Project
     that will be implemented starting in the race 51B
     with Street 3B (Puerto Colombia) continues for the
     race 51B to 93 Street (Barranquilla); take the street
     to the Race 46 93 and continues through the race
     46 to 74 Street. The tram going to work with
     electric light, strengthened with solar energy, will
     be special for disabled people and will have 12
     stations along the street 30.

                                                       Start date
                      CAPEX*            Current
      Proposal                                           bidder
                  (Millions pesos)       Status
                                                        process*

    Unsolicited      1.400.000       Pre-feasibility   May 2018

                                                                    *Datos estimados, por definir en el proceso de estructuración

PPP projects
January 2018
Mass and Strategic Transit
  Other district projects in formulation

                               Descriptions
     The district will finance with resources of the general system
     of royalties, That amount to 100 billion pesos, the studies
     and design of 10 vials projects
     1.South Railway
     2.Network railway of the North
     3.Longitudinal avenue of the west (from soacha to
     boundaries with chia)
     4.Canal Salitre y Negro river
     5.Expanse of 80 street
     6.Avenue Centenario
     7.Avenue Av. San José́ (170 street)
     8.Autonorte from Héroes to street 193
     9.Avenue Boyacá from street 183 to (Chía)
     10.Circunvalar of the east from exit to Llano to Av.
     Villavicencio

                                                                            Reference images Source: IDU
                                                                      Source: Instituto de Desarrollo Urbano

PPP projects
January 2018
4.2
Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          Education
Education (Phase I)
                                           Descriptions
        Decrease the classrooms Descriptions
                                   deficit, expand coverage and
        start the “school day plan” through a PPP project that will
        carries out the construction, provision, operation,
        maintenance and provision of non pedagogical services.

                                               Deficit   CAPEX*                      Start date
                                                                        Current
   Proposal        Location      Schools    Converge of (Millions of                  bidding
                                                                        Status
                                              the ETC     pesos)                      process*

                  Barranquilla     8            52%        $ 161,59
                                                                       Feasibility
                  Cartagena        5            50%        $ 100,71
     Public        Medellín        15           15%        $ 267,01                  April 2018
                                                                       Approval
                    Soacha         8            69%        $ 110,89     Process

               TOTAL               36                      $ 640,19

                                                                                                  *Data, to be defined in the structuring process

PPP projects
January 2018
Education (Phase II)
                                 Descriptions
                            Descriptions
    Decrease the classrooms deficit, expand coverage and start the
    “school day plan” through an APP project that will carries out
    the construction, provision, operation, maintenance and
    provision of non-pedagogical services

                                           CAPEX*                   Start date
                                                         Current
     Proposal      Location    Schools    (Millions of               bidding
                                                         Status
                                            pesos)                   process*

                    Ibagué       10        $ 144,00
                   Antioquia     24        $ 376,00
       Public                                            Feasibility March 2018
                                To be       To be
                    Bogotá
                               defined     defined
                TOTAL            34       $ 520,000

                                                                                  *Data, to be defined in the structuring process

PPP projects
January 2018

                                         www.dnp.gov.
4.3
Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
          dnp.gov.co          Culture
Culture
                                 Descriptions                            Cartagena

     Promote the strengthening of museums and the development of                                               Villa del
                                                                                                               Rosario
     cultural programs with 8 National Museums, in Cartagena, Santa
     Fe de Antioquia, Villa de Leyva, Honda, Villa del Rosario,
     Popayán (2) and Ocaña                                                                                       Ocaña

                           CAPEX*                       Start date     Santa Fe de Antioquia

               Proposals   (Millions   Current Status    bidding
                            pesos)                       process*                                          Villa de Leyva

                                         Approval
                Public     30.000                       April 2018
                                          Process                     Popayán                     Honda

                                                                                               *Data, to be defined in the structuring process

PPP projects
January 2018
Galeón San José

                                       Descriptions
    Develop the scientific project for the recovery of the “Galeón
    San José”. The proposal has the highest scientific, technological
    and financial quality standars, required to the knowledge of the
    cultural heritage.

                            CAPEX                     Start date
               Proposals   (Millions       Status      bidding
                            pesos)                     process*
                                          Approval
                Public         -                      March 2018
                                           Process

                                                                        *Data, to be defined in the structuring process

PPP projects
January 2018
4.4
Public Private Partnerships
Regulatory Framework and
     Project Portfolio

         January, 2018
                              Water and
          dnp.gov.co
                               Sewage
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