31907 - Recaudo Bogota

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Summary of Investment Information

Project Number

31907

Company Name

RECAUDO BOGOTA SAS

Date SPI Disclosed

Apr 30, 2012

Country

Colombia

Region

Latin America and the Caribbean

Projected Board Date

Jun 5, 2012

Environmental Category

C - No Impact

Status

Active

Last Updated Date

Nov 30, 2016

Department

Regional Industry INF LAC & EUR

Industry

Infrastructure

Previous Events

Approved : Oct 12, 2012
Signed : Nov 14, 2012
Invested : Mar 13, 2013

Sector

Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)

Additional Project Attributes

Public-Private Partnerships

Project Description

Recaudo Bogota, S.A. (the “Company” or “Opportunity”) is Bogota’s Fare Collection and User Information and Service System’s concessionaire (“SIRCI”) for the new Integrated Public Transportation System (“SITP”). It is responsible for the integration and implementation of the system as well as for the commercialization of the Contact-less Smart Cards that will support the system’s fare collection. Recaudo will also provide real time data to support monitoring and control of the system’s bus fleet and real time transportation and fares information to users, bus operators and TransMilenio.

Bogota’s bus-based transportation system is undergoing a massive overhaul. The ownership structure of the privately provided transport service is changing to allow 13 operators to take over from over 14,000 owner-operators of buses in an effort to introduce better quality standards, uniformity, transparent and adhered-to schedules and higher safety. The change can only be made possible by a further consolidation of fare collection and logistics through a common platform provided as a service by Recaudo Bogota starting July 2012. The common platform will allow the ultimate manager of the service, city-owned Transmilenio, to better manage this large and complex system that will comprise of multiple fleets of over 16,000 buses running 500+ routes and carrying over 4.5 million passengers daily.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	60.0
Equity

Development Impact

a. Reduce the number of buses in the system by about 7500 buses, all of which old, below safety and environmental standards;
b. Reduce accidents and death-by accident rates related to buses;
c. Reduce congestion and traffic gridlocks;
d. Improve labor conditions for most of today''s driver-owners. Reduce working hours from 13-14 / day to 8 per day, receive stable income, social security, health insurance and other benefits;
e. Improve quality of service in the public transportation system of Bogota. Provide predictable, scheduled service, run buses that are of superior quality than the ones currently in use.
f. Increase transparency in the system which will result in better cost and remuneration allocation;
g. Recaudo will make a system of transfers possible, reducing total cost of ridership to all those users of the system that today transfer from bus to bus and pay multiple fares for each destination;
h. Recaudo will make it possible for Transmilenio to manage the systems more efficiently by providing live information on traffic conditions, bus unavailability, break-downs, maintenance schedules, etc;
i. Recaudo will help improve the security in the transit system by allowing Transmilenio to better monitor key stations and by availing bus drivers with an SOS system for all emergencies.
j. Recaudo''s fare and recharge infrastructure will take cash out of the transport system, eliminating all the other inefficiencies that come with it - waiting lines, slow bus mounting procedures, pilfering, etc.

a. SITP is very politically sensitive, therefore potentially unstable operating environment. IFC presence will alleviate some political risk.
b. IFC has an important role providing needed long term financing and mobilization for a project that is key to the success of the new public transportation system in Bogota. Local Commercial banks have participated in the financial closings of SITP bus operator concessions for an estimated US$ 1.2 billion. The collection concession was awarded after the bus operator concessions and local banks feel they have enough exposure to the SITP and do not have appetite to increase it substantially. The Company was pursuing lenders separately (including ECAs). IFC''s suggestion to help arrange the entire financing was welcomed, especially given the timeframe pressures.
d. IFC will support new foreign investors in the country that are doing South-South expansion (Korean and Chilean investors).
e. IFC has the local flavor and knowledge in transport to understand the SITP underlying risks and the global expertise in evaluating payment systems, that will provide comfort and a stamp of approval for B lenders.
d. IFC has deep experience with payments systems outside transport. Given the enormous user base, IFC is hopeful that the system can be converted into a major sustainable business outside the concession. IFC will help conceptualizae and set up an executable base for this endeavor.

E&S Category Rationale / Risks and Mitigation

Contacts

For Inquiries About the Project, Contact

Andrés Felipe Züñiga Rivera
Tel: +5713454965
mailto:azuniga@rbsas.co

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