The European Investment Bank (EIB), Inter-American Development Bank (IDB) and International Bank for Reconstruction and Development (IBRD) have signed financing agreements with Empresa Metro de Bogotá to part fund the construction of the capital’s first metro line.
The European bank will provide $480m loan and the IDB and IBRD will contribute $600m each to the $4.3bn project.
The $56m granted by the EIB with the guarantee of the Republic of Colombia will be the first instalment of the $480m loan approved by the EU bank for the project.
The 24km Bogota metro line in the Caracas Corridor in the south-west of the capital will be constructed on raised track to avoid earthquake risks.
Under the project, which will enter into service in 2026, 15 stations will be constructed and 23 trains, each with a capacity of 1,800 passengers, will be acquired.
Part of Bogotá’s 2016-2019 Municipal Development Plan, the project includes several other schemes to improve public transport in the city, including upgrading the public bus system to link it to the new metro and building 14km of new cycle paths.
The EIB is providing the loan under its Climate Action and Environment Facility (CAEF) to foster climate change mitigation by promoting the use of public transport and helping to reduce emissions.
The metro line is also expected to generate new business opportunities, contribute to job creation, and make it easier for workers to travel into the city centre, boosting economic growth.
This will be the first public sector project to be financed by the EIB in Colombia. IBRD is part of the World Bank Group.
EIB vice president Emma Navarro said: “For the first time, the EU bank is financing a project in the public sector in Colombia, supporting a large-scale piece of infrastructure that will have major economic and social benefits for the people.
“This project will foster climate action by helping to reduce pollutant emissions. We are therefore delighted to be taking part in a project that will transform Bogotá, meet all of the EU’s top priorities in the region and promote social inclusion and economic growth in Colombia.”
Image: EIB Group’s headquarters. Photo: Courtesy of European Investment Bank.