IFC Backs $904M Colombia Port Corridor Upgrade with Landmark Sustainability Loan

The International Finance Corporation (IFC), part of the World Bank Group, has announced a major financing package for the Buga–Loboguerrero–Buenaventura (BLB) toll road concession in Colombia — a critical infrastructure project designed to modernize one of the country’s most strategic trade corridors.

Awarded in 2022 to global infrastructure developer SACYR, the BLB project is a brownfield concession that will significantly enhance connectivity between Colombia’s inland regions and Buenaventura, the country’s largest port. Buenaventura handles 44% of Colombia’s total trade, making it the linchpin of the nation’s maritime commerce.

A Strategic Economic Corridor

The BLB corridor’s importance extends far beyond transportation efficiency. By improving access to Buenaventura, the project will:

• Cut travel times by 30–40 minutes.

• Reduce the risk of disruptions that have historically plagued the route due to inadequate maintenance.

• Support job creation, economic growth, and regional integration.

• Boost Colombia’s competitiveness in global trade.

With a total project financing of US$904 million, the IFC is contributing US$220 million equivalent in Colombian pesos, while parallel lenders are providing the remainder. The IFC is also leading Environmental and Social (E&S) coordination to ensure compliance with its Performance Standards.

A Landmark Sustainability-Linked Loan

A defining feature of this financing is its Sustainability-Linked Loan (SLL) structure — the first project finance SLL for a road concession in Latin America and the largest project finance facility in Colombia to date.

An SLL ties the loan’s terms directly to the borrower’s achievement of specific Key Performance Indicators (KPIs). In the BLB project, these KPIs focus on:

1. Reducing absolute greenhouse gas emissions during construction and operation.

2. Increasing the share of women in the direct workforce across all project phases.

If these targets are met, it will not only demonstrate sustainable performance but also incentivize future infrastructure developments in Colombia to adopt similar approaches.

Partnerships and Impact

This transaction marks IFC’s first direct collaboration with SACYR and its third direct investment in Colombia’s 4G/5G toll road programme.

Ignacio García, SACYR’s Country Director in Colombia, welcomed the announcement:

“This project is key to the development of the region and will bring important social benefits to the communities. We thank the entities for their trust in making this possible.”

Cheryl Edleson Hanway, IFC’s Regional Industry Director, emphasized the broader impact:

“By structuring this financing as a Sustainability-Linked Loan, we are setting new standards for environmental and social performance in infrastructure. This project mobilizes long-term capital for a critical trade route while delivering tangible benefits for Colombia’s economy and communities.”

Setting a Benchmark for the Region

The BLB investment is part of IFC’s broader mission to mobilize private capital for sustainable infrastructure in Colombia and Latin America. By embedding sustainability goals directly into the financing structure, the project sets a new benchmark for balancing economic growth with environmental and social responsibility.

The BLB corridor, once upgraded and modernized, will serve as a model for how green finance, infrastructure innovation, and social inclusion can come together to strengthen national and regional development.