European Companies In A Railway Concession In Colombia

On January 27, the Colombian Government officially awarded the international bid for the most important railway concession. The Government decided between two proposals for the 30 years rehabilitation and operation of the 1200 kilometer railway system between Bogota (Colombia's capital city) and Santa Marta (one of Colombia's most important ports on the Caribbean coast).

The Government awarded the concession to the Future Peace Railway Consortium composed mainly by companies from Spain, Italy and the local governments of the Cesar and Santander Departments. It was mentioned that this Consortium was selected because of their impressive financial proposal. The Government informed that the Consortium did not ask for any funding to rehabilitate the railway system and additionally agreed to pay a significant amount of money to the Government by the year 2005.

The privatization process to award the concession to rehabilitate and operate the railway system to the Pacific Coast would begin next March.

Prepared by Alejandro Linares and Hernando Padilla from Gomez Pinzon & Asociados, Bogota, Colombia.

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GOMEZ PINZON & ASOCIADOS
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Santafe de Bogota, Colombia

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