CONCESION AUTOPISTA CONEXIÓN PACÍFICO 1 – 4G TOLL ROAD

Client background

The Colombian Government rolled out an ambitious infrastructure investment plan, the 4G Toll Road Concession Program in 2013, wherein, it had awarded concessions for 30 projects out of a targeted total of 40, comprising of 7,000km of toll roads, totalling around COP47 trillion to construct.

The main objective of the program is to improve and expand the country’s transportation network, which currently acts as a drag on economic performance.

Corficolombiana acted as a sponsor to four projects from the 4G Toll Road Program including one known as ‘Concesion Autopista Conexión Pacífico 1’. The project was promoted by the Government of Colombia and had an overall debt financing of approximately US$ 864 million.
.

Our Role

Mazars acted as a financial modeller to provide modelling services in relation to the conversion of the availability payment toll road financial close models into an operating/ construction monitoring model, to share results with the senior managem.

Project outcomes

• Convert Availability Payment toll road financial close models to an operating/construction monitoring model;
• Developed equity IRR bridge to reconcile most important variations on expected returns do to variations in assumptions between (i) bidding, (ii) financial close, and (iii) current project status including effective historical performance;
• Developed the model with the ability to reconcile NPV and key ratios and metrics, such as revenues, costs, and taxes;
• Developed the model with the ability to project cash flows and financial statements, taking into account historical data (actuals) and budget assumptions for the following year;
•  Inclusion of historic data into the model’s separate input sheet;
• One of the models had a mini perm structure, therefore, Mazars included refinancing module in monitoring model to support the analysis;
• Illustrated with screenshots of how the conversion is done and how a static model differs, such as financial closing vs. one upgradeable every quarter of construction monitoring and O&M phase
  .