InvestChile Blog

Colombia’s ISA establishes company in Chile

Written by InvestChile | August,3,2020

ISA has signed a joint venture with a Colombian construction company that will have a starting capital of US$1.3 million.

Intervial - the highway operator in Chile linked to the ISA group - and Colombia’s Construcciones El Cóndor have established Interconexiones Viales SpA, a Chile-based company through which they plan to grow in highway concessions in their home country and Peru.

In 2010, ISA, an important player in both the Chilean and Colombian electricity markets, acquired all Cintra’s stake in Chilean highways, with the idea of ​​gaining experience in the sector before expanding to the rest of the region.

Intervial is one of the main operators of interurban highways in Chile. It currently holds the contract for six stretches of highway in both northern and southern Chile. As a result, it will contribute expertise in concessions while Construcciones El Cóndor has experience and a leading position in Colombia in investment in road concessions and construction, as well as its knowledge of structuring bids for tenders and private initiatives.

Interconexiones Viales - which will be controlled by Intervial (65%) - will have a starting capital of US$1.3 million. The president of ISA, Bernardo Vargas, indicated that “we know that the infrastructure sector is a key pillar of the economic reactivation of the country and the region. In Colombia, we will be attentive to the country’s needs and proactive in satisfying them by proposing private projects.”

“In parallel, we will continue to develop our current business in Chile through Intervial Chile, seeking to win the re-tender of the concessions we already hold, and will continue to participate in the projects that the Public Works Ministry puts out to tender,” added Vargas.

To learn more about investment opportunities in the infrastructure sector, read this article.

Source: Diario Financiero