Colombia's La Linea tunnel receives additional funding

A US$270 million loan looks set to help restart work on Colombia’s La Linea tunnel construction project. The Andean Development Corporation (CAF) is providing the loan, which is equivalent to around 68% of the total cost of this project which has an estimated cost of $400 million. Meanwhile, some 25% of the cost of the project will be financed with local contributions and the remaining 7% with a loan previously granted by CAF. Work on the La Linea tunnel is planned for completion in 2013 and the link is intended to improve traffic between Bogota and Buenaventura. The tunnel is being built by a consortium Consorcio Segundo Centenario, which comprises Colombian, Mexican and Spanish firms. Although the project has been planned for some time it has suffered numerous delays due to design changes, legal challenges and fundings issues.