Israeli construction company Shikun & Binui Ltd. recently closed on a $640 million USD infrastructure project in Colombia to build a nearly 100-mile-long toll road near the nation’s capital of Bogotá. The large sum includes all the costs related to financing, construction, rehabilitation, operation, and maintenance of the new road in the state of Cundinamarca for at least a quarter century — and perhaps as long as 29 years.
“Shikun & Binui brings its project skills and capabilities, excellence, professionalism, and decades of experience in successfully performing similar projects,” said company CEO Yaron Karisi.
For Colombia, the project is yet another important component of its so-called “4G” infrastructure overhaul that will pump billions of dollars into new highways, bridges, and tunnels over the next seven years.
Difficult transportation logistics and travel times are a significant drain on the economy, and experts have estimated that the 4G project, which touches virtually the whole country and scheduled to have some 5,000 miles of new infrastructure completed by 2023, will cut related costs by up to 30%.
The company, which won the project through the Colombian Ministry of Transportation’s Government Infrastructure Authority, has already secured $460 million USD in long-term funding via both Colombian and international sources, according to the company.
“The financial closing of the project in Colombia is an additional significant milestone in realizing the group’s international strategy to expand its international infrastructure activity, and diversify its global operations,” said Moshe Lahmani, chairman of Shikun & Binui. “The completion of the financial closings in the U.S., and now in Colombiam will contribute to the group’s record backlog. We will continue to compete for new mega-projects in line with our strategical targets.”