IFC supports Colombian transport infrastructure

The IFC has provided US$45mn to rehabilitate Colombia’s capital city Bogotá’s road network, and to build sidewalks and bikeways. The money has been provided through a joint initiative with the World Bank that supports municipalities in delivering key infrastructure services, including water, wastewater management, transportation, and electricity and other local public entities in development countries, without sovereign guarantees.

“It enables the city to continue diversifying its sources of financing for major projects. It also helps the city depend less on the central government for resources and minimises the number of guarantees and pledges against revenue that the city must establish to raise the funds it needs,” comments Juan Ricardo Ortega López, Bogotá’s secretary of finance. Robert Albisseti, IFC country manager, adds: “The financing is also part of IFC and the World Bank’s strategy to promote sustainable growth in Colombia by supporting key infrastructure projects.” This is IFC’s second project with the city, having previously helped Bogotá simplify a system for inspecting companies’ environment, health, and safety planning and fire prevention.

Publication: Global Trade Review News
Provider: Exporta Publishing & Events Ltd
Date: September 8, 2008

Pacific Rubiales closes Kappa acquisition

Toronto-based Pacific Rubiales Energy (TSX: PEG) has closed the acquisition of Colombian oil company Kappa Energy for a cash payment of US$168mn, the Canadian company said in a statement.

The deal remains subject to minor post-closing adjustments and regulatory approval in Colombia.

Kappa has holdings in nine blocks in the Catatumbo, Llanos and Lower, Middle and Upper Magdalena basins of Colombia. The total land position is close to 750,000 acres (300,500ha).

As of May 31, Kappa had 10.3Mboe of 2P reserves and 24.2Mboe of 3P reserves. Nearly 166Mboe of further prospective resources have also been identified, according to the statement.

Pacific Rubiales aims to invest US$171mn in Kappa through 2009 to boost the company's production from its current 4,100boe/d to 10,000-12,000boe/d.

Pacific Rubiales, which boasts net production of roughly 22,500boe/d, operates the Rubiales heavy oilfield and La Creciente natural gas block in Colombia in addition to other assets in the country. The company also has operations in Peru.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 8, 2008

Brasil Telecom to set up subsidiary in Colombia

The Board of Directors of Brasil Telecom has approved the setting up of a subsidiary of the company in Colombia to provide international connections for operators in that country. The new company will belong to Brasil Telecom GlobeNet, an arm of the operator which operates an underwater fibre optic network which resulted from the acquisition of GlobeNet by Brasil Telecom.

It offers telecommunications infrastructure for operators and providers. Brasil Telecom was already present in Venezuela, Bermudas and the USA via its business unit Brasil Telecom GlobeNet and the setting up of a company in Colombia represents a natural expansion for its business.

Publication: Telecom.paper News
Provider: Telecom.paper
Date: September 8, 2008