Private Participation in Infrastructure10/documents/Colombia...allows airplanes level C, with Visual Flight Rules (VFR) and Non Instrument approach procedure. According to the Federal

Private Participation in Infrastructure

April 2007

Gerencia de Participación Privada en Infraestructura


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Contents TRANSPORT

Roads

• Ruta del Sol Road Concession

Urban Transport

• Bus Rapid Transport System (BRT) - Cali • Bus Rapid Transport System (BRT) - Barranquilla • Bus Rapid Transport System (BRT) - Cartagena • Bus Rapid Transport System (BRT) – Bucaramanga • Public Transport Strategic Systems

Air Transport

• Integration and Concession of Medellín, Rionegro, Montería, Quibdó and

Carepa Airports

Railways

• Railways Concessions: Faca - Belencito MINES AND ENERGY

• Sale of the Nation’s Shareholding in Five Electric Utility Companies • Ecopetrol Shares Public Offering • Sale of the Nation’s Shareholding in Gecelca (Generadora y

Comercializadora de Energía del Caribe) and Urrá • Isagen Shares Public Offering • Investment Alternatives in Mining

TELECOMMUNICATIONS

• Attraction of a Strategic Operator to Provide the National Postal Services • Compartel - Program of Social Telecommunications


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RUTA DEL SOL ROAD CONCESSION Sector

Transport.

Sub-sector Roads.

Objective

Structure through a Concession scheme the design, construction, rehabilitation, enhancement, maintenance, operation and financing of the route Tobia Grande – Puerto Salgar San Alberto – La Loma – Bosconia – Y de Ciénaga – Santa Marta, which is one of the main roads in Colombia and connects the centre of the country with the Atlantic Coast.

Investments

The project estimated investment is USD $ 2.500 millions.

Features

The road is 880 Km long and has the following sections:

• Construction of a double lane between Tobiagrande – Puerto Salgar. • Rehabilitation of the existing road between Villeta – Guaduas –

Honda. • Rehabilitation of the existing lane and construction of a second lane

between Puerto Salgar – San Alberto. • Rehabilitation of the existing lane and construction of a second lane

between San Alberto – La Mata – La Loma – Bosconia – Y de Cienaga.

• The project includes the construction of a 10 Km viaduct.

Private sector participation Acceptable bidders: The private participation scheme to be implemented will consider the need to increase the participation of financial and institutional investors, not only in the financing phase but as long term investors through equity participation.

Status In process to hire an Investment Bank which will structure the concession.


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Legal aspects

The project will comply with the Transport Act (Act 105 of 1993) and the Administrative Contracting Statute (Act 80 of 1993).

Contact points

National Institute for Concessions - INCO Alfredo Perez

Structuring Manager 3240800

Fax: 3240800 ext 1921


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BUS RAPID TRANSPORT SYSTEM (BRT)

SANTIAGO DE CALI Sector

Transport. Sub-sector

Urban transport. Objective

To award the concession for the operation and collection of the bus rapid transport system in Santiago de Cali.

Investments

• Infrastructure: US $292 mill. • Buses and Collection system: US $170 mill.

Features

• The system, based on bus technology, is composed by 49 km of main corridor routes connected with complementary feeding routes. The equipment cost is estimated at US$ 91 million with the tariff collection system included.

• The estimated construction time is 5 years, while the first stage (14 km) is expected to be completed in one year.

• The estimated demand is 815.400 passengers per week day. Private sector participation

• Bidding process for the infrastructure construction. • Bidding process for the concession of the operation and collection

services. • Acceptable bidders: Strategic investors, financial investors, BRT

operators, equipment suppliers and construction Companies, among others.

Status

• Bidding process for the construction of Troncal Av. 3N (4,6km), opening in april, and Troncal de Aguablanca (6,17km), opening in June 2007.

• Operation bidding process for the fifth stage to be open in 2H 2007.

Legal aspects


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• The project complies the provisions set forth in the Transportation Act (1993 Act 105), the Massive Transportation Act (1996 Act 310) and the Administrative Contracting Statute (1993 Act 80).

• Biddings for construction will be held under multilateral agency procedures.

Contact points

Metrocali Enterprise National Planning Department Luís Fernando Lían Arana Pedro Luis Jimenez President of Metrocali Private Participation Group

(2) 6689440 e-mail:

[email protected]

(1) 596 0312 e-mail: [email protected]


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BUS RAPID TRANSPORT SYSTEM (BRT) BARRANQUILLA

Sector



To award the concession for the operation and collection of Barranquilla´s bus rapid transport system.

Investment

The estimated investment is: • Infrastructure: US$ 62 million. • Buses and collecting system: US$ 106 million.

Features

The project is a Bus Rapid Transport System (BRT), structured as a transportation corridor network including the roadway for high-capacity buses which are fed by a system of short routes with lower demand. The purpose of this system is to satisfy current and future demand for transportation in the metropolitan area. The system will connect the main roadway trajectories of the metropolitan area with the regional and rural-urban transportation system. Therefore, such an interconnected system will guarantee a physically, operatively and tariff-wise integrated system, ensuring maximum demand coverage with optimum levels of service.

The estimated demand is 507.600 passengers per week day.

Private sector participation

• Bidding process for the design, construction, and concession of the operation and maintenance of the BRT.

• Acceptable Bidders: International consulting firms associated with national ones, Colombian engineering firms, financial investors, and urban massive transport operators among others.

Status

• Bidding process for construction began 1H2007. • The next sections of the system are in bidding process.


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Legal aspects

The project will comply the provisions set forth in the Transportation Act (1993 Act 105), the Massive Transportation Act (1996 Act 310) and the Administrative Contracting Statute (1993 Act 80). Biddings for construction will be held under multilateral agency procedures.

Contact points

Empresa Transmetro S.A National Planning Department Alvaro Osorio Pedro Luis Jimenez

General Manager Private Participation Group

(5) 3660319/20/21/22

e-mail: [email protected]

(1) 5960312



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BUS RAPID TRASNPORT SYSTEM (BRT) CARTAGENA

Sector



To award the concession for operation and collection of the bus rapid transport system in Cartagena.

Investment


Features

The project is a Bus Rapid Transport System (BRT), structured as a transportation corridor network including the roadway for high-capacity buses, which are fed by a system of short routes with lower demand. The purpose of this system is to satisfy current and future demand for transportation in the metropolitan area. The system will connect the main roadway trajectories of the metropolitan area with the regional and rural-urban transportation system. Therefore, such and interconnected system will guarantee a physically, operatively and tariff-wise integrated system, ensuring maximum demand coverage with optimum levels of service.


• Bidding process for construction of the BRT first phase. • Acceptable bidders: International consulting firms associated with

local firms, Colombian engineering firms, financial investors, urban massive transport operators, among others.

Status

• The first section of the system is under construction (1,1 km). • Other sections of the system are in bidding process.

Legal aspects

The execution of the project will comply with the provisions set forth in the Transportation Act (1993 Act 105), the Massive Transportation Act (1996


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Act 310) and the Administrative Contracting Statute (1993 Act 80). Biddings for construction will be held under multilateral agency procedures.

Contact points

Transcaribe S.A National Planning Department

Enrique Chartuni González Pedro Luis Jimenez

Transcaribe Manager Private Participation Group

e-mail: transcaribe@alcaldiadecartagen

a.gov.co

(1) 5960312 e-mail: [email protected]


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BUS RAPID TRASNPORT SYSTEM BUCARAMANGA

Sector



To award the concession for the operation and collection of Bucaramanga´s bus rapid transport system.

Investment


Features

The project is a Bus Rapid Transport System (BRT), structured as a transportation corridor network including the roadway for high-capacity buses, which are fed by a system of short routes with lower demand. The purpose of this system is to satisfy current and future demand for transportation in the metropolitan area. The system will connect the main roadway trajectories of the metropolitan area with the regional and rural-urban transport system. Therefore, such an interconnected system will guarantee a physically, operatively and tariff-wise integrated system, ensuring maximum demand coverage with optimum levels of service.


• Concession Bidding process for the design, construction, operation, and maintenance of the BRT.

• Acceptable Bidders: International consulting firms associated with local firms, Colombian engineering firms, financial investors, and urban massive transport operators, among others.

Status

During 2007, there will take place the bidding processes for the remaining infrastructure stages of the project. Metrolinea is preparing the bidding process for the operation and collecting system.


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Legal aspects

The execution of the project will comply with the provisions set forth in the Transportation Act (1993 Act 105), the Massive Transportation Act (1996 Act 310) and the Administrative Contracting Statute (1993 Act 80). Biddings for construction will be held under multilateral agency procedures.

Contact points

Metrolinea S.A National Planning Department

Félix Francisco Rueda Pedro Luis Jiménez

Manager Private Participation Group

(7) 6440311



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PUBLIC TRANSPORT STRATEGIC SYSTEMS Sector



To award the collecting system, control, urban furniture and public parking lots, for cities with population between 300.000 and 600.000 people.

Investment

For the 11 cities that are being consider in the project the estimated investment is US$439 million.

Features

The project has been conceived to cover the following cities: Armenia, Pasto, Manizales, Popayán, Santa Marta, Neiva, Valledupar, Montería, Villavicencio, Buenaventura e Ibagué; and it includes the following activities:

• Centralized collection system concession • Public transport control systems concession • Concession for the installation and maintenance of urban furniture • Concession for the operation and management of public parking lots • Traffic lights systems management • Infrastructure adjustment • Busses supply


Acceptable Bidders: International consulting firms associated with local firms, Colombian engineering firms, financial investors, and urban massive transport operators among others.

Status

There are five cities undergoing pre-investment studies (Pasto, Valledupar, Armenia, Manizales, Santa Marta, Neiva y Buenaventura). The remaining cities are about to start the studies.

Legal aspects

The execution of the project will comply with the provisions set forth in the Transportation Act (1993 Act 105), the Massive Transportation Act (1996


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Act 310) and the Administrative Contracting Statute (1993 Act 80). Biddings for construction will be held under multilateral agency procedures.

Contact points

National Planning Department

Pedro Luis Jiménez

Private Participation Group



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INTEGRATION AND CONCESSION OF MEDELLÍN, RIONEGRO, MONTERÍA, QUIBDÓ AND CAREPA

AIRPORTS Sector


Air transport.

Objective To award the concession for the administration, operation, maintenance, renewal and expansion of a group of five (5) airports, in order to reach and maintain operation standards above the Service Level C1.

Investments

The estimated investment is USD$100 Millions.

Features According to the track and runway system capacity, the Rionegro´s International airport can handle a maximum of 210,000 operations with 53 operations per hour in IFR (instrumental flight rules) conditions. According to the demand forecast for the year 2022 the airport expects to have approximately 49,500 operations per year; meaning that the actual capacity is able to manage the expected increments in traffic. The Medellin Airport, is certified as an international airport. In 2006 it moved 757.057 passengers, 5.057 cargo tons and 77.266 operations. The airport administration and operation is provided by the municipality of Medellin. The Monteria Airport operates as a local airport with a runway system that allows airplanes level C, with Visual Flight Rules (VFR) and Non Instrument approach procedure. According to the Federal Aviation Administration, the capacity is 14 operations during rush hours and 180,000 operations per year. According to the demand forecast for the year 2022 the airport expects to have approximately 14,000 operations per year; meaning that the actual capacity is able to manage the expected increments in traffic. The Quibdo Airport operates as a local airport with a runway system that allows airplanes level C, with Visual Flight Rules (VFR) and Non Instrument approach procedure. According to the Federal Aviation Administration, the capacity is 14 operations during rush hours and 180,000 operations per

1 IATA- International Air Transport Assosiation


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year. According to the demand forecast for the year 2022 the airport expects to have approximately 18,000 operations per year; meaning that the actual capacity is able to manage the expected increments in traffic. The Carepa Airport operates as a local airport with a runway system that allows airplanes level C, with Visual Flight Rules (VFR) and Non Instrument approach procedure. According to the Federal Aviation Administration, the capacity is 14 operations during rush hours and 180,000 operations per year. According to the demand forecast for the year 2022 the airport is expected to have approximately 15,000 operations per year; meaning that the actual capacity is able to manage the expected increments in traffic


• Concession Bidding process • Acceptable Bidders: Strategic Investors, Financial and Institutional

Investors, operators and construction companies among others. Status

STRUCTURE Investment Bank is structuring the project.

Legal aspects

The project execution is within the framework of the Transportation Act (Act 105 of 1993) and the Administrative Contracting Statute (Act 80 of 1993)

Contact Points

Aeronáutica Civil Miguel Acosta

Financial Director 2662218

[email protected]


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RAILWAYS CONCESSIONS: FACARTATIVA-BELENCITO Sector

Transport.

Sub-sector Railways.

Objective

To award the construction, rehabilitation, maintenance, management and operation of the Faca-Belencito railway.

Investment

To be determined.

Features The first railway project to be awarded, from the package of railways available for concession is the railway Facatativa – Belencito. It is the connection between a steel and coal production zone in Boyacá with Bogotá. There is a special characteristic that is going to be considered during the structuring process Bogotá’s suburbs train.

The railway length is 360 km.


Acceptable Bidders: Strategic investors, financial and institutional investors, operators and constructors among others.

Status

The railway Facatativa-Belencito is being structure by the National Concession Institute.

Legal Aspects

The project execution is within the framework of the Transportation Act (Act 105 of 1993) and the Administrative Contracting Statute (Act 80 of 1993)


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Contacts

Instituto Nacional de Concesiones INCO

Miguel Bonilla Coordinador Grupo Férreo

Tel 3240800 [email protected]


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SALE OF THE NATION´S SHAREHOLDING IN FIVE ELECTRIC UTILITY COMPANIES

Sector:

Mines and energy. Sub-sector:

Electricity. Objective:

To sale the Nation´s shareholding in: Empresa de Energía de Cundinamarca S.A. ESP-EEC, Electrificadora del Meta S.A. ESP-EMSA, Empresa de Energía de Boyaca S.A. ESP-EBSA, Electrificadora de Santander S.A. ESP-ESSA, and Centrales Electricas del Norte de Santander S.A. ESP-CENS.

INVESTMENT

Estimated investment: US$ 400 Million for the Nation’s shareholding in the 5 companies.

Features

• The government has the control of these five companies attending regulated and non regulated users. Revenue comes from distribution and commercialization charges on regulated users and other revenues from the non regulated market. In addition, ESSA has generation and transmission activities while EBSA has generation activities.

• The energy transmission, distribution and commercialization activities

in Colombia are regulated by the Energy and Gas Regulation Commission (CREG) and are supervised by the Public Domiciliary Services Superintendence –SSPD-. The following table shows an overview of these companies:

EBSA EEC ESSA CENS EMSA

Assets (dic/31/06) 376 103 434 331 92

Debt (dic/31/06) 154 45 102 77 25

Equity (dic/31/06) 222 58 332 255 68

Operational Income (2006) 104 71 264 105 56

Nation´s Shareholding 99,63% 88,14% 82,93% 79,00% 55,68%

Total Users (dic 06) 384.414 187.243 480.362 316.595 170.845

(Figures in USD$ MM)


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Possible Participants: Strategic and institutional investors and operators among others.

Status

The investment banker -Inverlink- BBVA- is in charge of structuring the process and designing the sale scheme. The sale program approval is expected to take in a Ministry session in June 2007.

Legal aspects

The current Act applicable to this project is Act 142 of 1994 and Act 143 of 1994. Furthermore, the activities of electricity distribution and commercialization are regulated by the CREG. In addition, the sale process of the Nation´s shareholding in these companies is established by Act 226 of 1995.

Contact points

Ministry of Mines and Energy National Planning Department

Ministry of Finance and Public Credit

Manuel Maiguashca Carlos Eraso Carlos Caycedo

Viceministro Subdirector de Minas y

Energía Jefe Oficina de Participación Privada

(1) 3245213 email:

[email protected]

(1) 5960300 e-mail:

[email protected]

(1) 3381700 email:

[email protected]


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ECOPETROL SHARES PUBLIC OFFERING Sector

Mines y Energy Sub-sector

Oil and gas Objective

The objective is to Issue an additional 20% of shares to raise funds to make investments, in order to consolidate the company’s exploration business, to continue the development of mature and heavy oil fields, to initiate an internationalization phase and to achieve high quality standards on their refineries.

Investments

To be determined Features

Make a public offer for the 20% of the total number of shares of Ecopetrol. With these resources the company will be able to have a budgetary, financial and management independence.

For more information on the process consult: http://www.ecopetrol.com.co/contenido.aspx?catID=275&conID=39392


Possible participants: common sector and strategic investors.

Status

• Ecopetrol already contracted legal advisors and investment bankers to structure the process.

• JP Morgan – Credit Suisse where selected as the consortium for the structuring of the deal.

• Citibank - Merrill Lynch where selected as second valuators.

Legal Aspects In December 2006 the Act 1118 was approved by the Congress, authorizing the company status modification from a state owned company to a Stock Corporation.


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Contacts






(2) 3245213 email:

[email protected]

(1) 5960300 e-mail:

[email protected]

(1) 3381700 email:

[email protected]


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SALE OF THE NATION´S SHAREHOLDING IN GECELCA (GENERADORA Y COMERCIALIZADORA DE ENERGÍA

DEL CARIBE) AND URRÁ Sector

Mines and energy Sub-sector

Electricity Objective

To sale the Nation’s shareholding in GECELCA and URRA. Investment

To be determined Features

Gecelca started operations in February 1st 2007 and is the biggest Thermal generator in the country with 31% share of the total thermal installed capacity. It generates electricity mainly with the Termoguajira Plant (302 MW net capacity) and with two Power Purchase Agreements PPA (Termoflores I and TEBSA). The Nation’s Shareholding is 99%. Urrá S.A. ESP has a hydraulic plant on the Sinú River, at Cordoba Department. Urrá has four generation units with a total installed capacity of 335 MW, equivalent to 3.9% of the country’s hydraulic installed capacity. The Nation’s shareholding is 99.7%.


• Investment banks to structure the process. • Possible participants: common sector and strategic investors.

Status

The Bidding Documents to hire the investment bank that will structure the process are under construction.

Legal aspects

The current Act applicable to this project is Act 142 of 1994 and Act 143 of 1994. Furthermore, the activities of electricity distribution and commercialization are regulated by the CREG. In addition, the sale process of the Nation’s shareholding in these companies is established by Act 226 of 1995.


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Contact points






(3) 3245213 email:

[email protected]

(1) 5960300 e-mail:

[email protected]

(1) 3381700 email:

[email protected]


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ISAGEN SHARES PUBLIC OFFERING Sector

Mines and energy Sub-sector

Electricity Objective

Public offer of 523.973.000 preferred shares own by the Nation, equivalent to 19.22% of Isagen total outstanding shares.

Investment

COP $1.130 per share. Value of the total offer COP$592,089,490,000. Features

• ISAGEN is a mixed company (with private and state shareholders) of public services. It generates and commercializes electricity. It has 2.132 MW of generation installed capacity, equivalent to 16% of the county’s total capacity. The company also commercializes natural gas, coal, steam and other energetic resources of industrial use in the secondary markets.

• By Decree 4482 of 2006, the strategy for the sale of the Nation’s

shareholding was approved.

• The process will have three stages. In the first stage the shares will be offered exclusively to the solidary sector, under the special conditions specified in the 1995 Act 226. In the second stage the offer will be open to the general public through a national distribution network.

• If there are shares remaining after the first two stages, they will be

offer to the International Finance Corporation – IFC,

• The Terms of the Stock Offering and related documents can be consulted on the following web page:

http://www.isagen.com.co/metaAcc.jsp?rsc=acc02


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Acceptable Bidders: Members of the Solidary Sector, investors and general public.

Status

The fist stage of the process started February 28th 2007, lasting two months.

Legal aspects

The current laws applicable to this project are: law 142 of 1994 and law 143 of 1994. Furthermore, the activities of distribution and commercialization of electricity are regulated by the CREG. In addition, the sale process of the Nation’s shareholding in these companies is established by Law 226 of 1995.

Contact points

Ministry od Mines and Energy National Planning Department





(4) 3245213 email:

[email protected]

(1) 5960300 e-mail:

[email protected]

(1) 3381700 email:

[email protected]


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INVESTMENT ALTERNATIVES IN MINING Sector

Mines and energy. Sub-sector

Mining. Objective

To award the concession to explore, develop and exploit mining areas of gold, cooper, molybdenum and coal.

Investment

To be defined. Features

To award mining titles through bidding processes to strategic investors. The Ingeominas has identified the following areas as zones with good mining potential:

Mineral Location Area Estimated Reserves

Copper – Molibdeno Acandí 1,652 Ha. Not defined

Copper – Molibdeno Pantanos 2,800 Ha. 62 MM Tons

Gold Taraira 9,973 Ha. Not defined

Coal Alto San Jorge

29,489 Ha. 590 MM Tons

Coal Páramo del Almorzadero

27,188 Ha. 161.5 MM Tons

Coal Tibita 9,846 Ha. 15.2 MM Tons


Possible participants: Strategic investors and project developers.


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Status The bidding process will begin May 4th 2007 and the proposal presentation day is May 24th 2007.

Legal aspects

The current Act applicable to these mining areas is the Act 685 of 2000 and the Administrative Contracting Statute (1993 Act 80).

Contact points

Ministry of Mines and Energy INGEOMINAS Manuel Maiguashca Silvia Alvarez

Viceministro

(5) 3245213 email:

[email protected]

(1) 2221811 email:

[email protected]


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ATTRACTION OF A STRATEGIC OPERATOR TO PROVIDE THE NATIONAL POSTAL SERVICE

Sector

Telecommunications Sub-sector

Postal Services Objective

To attract a strategic operator (local or international, public or private) that operates the national postal services.

Investment

To be defined Features

The Colombian Government is trying to consolidate the country’s postal services trough a reform of the legal, institutional and regulatory framework. Attracting a strategic operator will contribute to promote the offer of new services, the modernization of traditional postal products and guarantee the improvement and development of this services.


Possible participants: Strategic investors and postal or logistic operators. Status

The process to hire the investment bank that will structure the process will start May 2007.

Legal aspects

The project will comply with the Administrative Contracting Statute (Act 80 of 1993) and was approved by the Conpes Document 3440 of August 2006 and the National Development Plan.


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Contact points

Telecommunications Ministry National Planning Department Ramón Angarita Lank Guillermo Alberto Cruz Alemán

Subdirector de Telecomunicaciones (1) 3443460

email: [email protected] (1) 5960300



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COMPARTEL PROGRAM OF SOCIAL TELECOMMUNICATIONS

Sector

Telecommunications Sub-sector

Social Telecommunications Objective

Contracting new projects for the expansion of the Compartel Program of Social Telecommunication.

Investment

US$ 176 million Features

• Compartel was created in 1999 to promote the universal access for telecommunications.

• The program presents emphasis in rural areas and urban territory

with high level of Unsatisfied Basic Necessities (UBN). • Compartel finances business plans of private operators who commit to

serve and operate under conditions of accessibility and nondiscrimination.

• Planning, structuring and monitoring social telecommunications

projects.

Estimated term of the project: 4 years (2007 – 2010) and has the following scope:

• Extension of mobile telephony cover in municipalities without service • Connectivity service in micro, small and middle enterprises (MIPYMES)

that do not have access. • Extension and/or replacement of broadband networks. • Broadband service for public institutions. • Opening of new “tele-centers”.


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Possible participants: o Utility companies. o Telecommunication companies.

Status

Bidding process to start 2T2007.

Legal aspects

The project will comply with the Administrative Contracting Statute (Act 80 of 1993).

Contact points

Telecommunications Ministry National Planning Department María Fernanda Gaitán Guillermo Alberto Cruz Alemán

CEO Compartel Subdirector de Telecomunicaciones

(1) 3443460 email: [email protected]
