120.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	120.0
Equity

* These investment figures are indicative

The Caracas Sur busway expansion project is part of a larger IFC engagement with the City of Bogota to support the development of the transport system; this engagement also entails the development of the Transmicable project. The overall expected development impact of this engagement is the following: 1.Project level-outcomes: -Improved quality of transport service. The projects improve the quality to public transportation services particularly for low income users in Bogota. Transmicable connects a low-income area of the City (Ciudad Bolivar) to the City's main public transport system (Transmilenio BRT) and Caracas Sur entails the provision of exclusive bus lanes to a segment of the BRT network where traffic is currently mixed. The quality improvement will result from reduced congestion and increased frequency of service. Users are expected to save ~8.2 million hours per year (6.2 million Transmicable and 2 million Caracas Sur) which results in approximate savings for users of US$ 18.3 million (US$ 14.7 million Transmicable and US$ 3.6 million Caracas Sur) per year. -Environmental effect and climate change mitigation. The projects will reduce CO2 emission by approximately 445 tons p.a. on average during operation (134 Transmicable and 311 Caracas Sur) by replacing existing buses fleet and lowering congestion and travel times. 2.Market Creation: -Integration. The projects will enable the development of new economic activities and clusters. Transmicable is part of an urban renovation project in Ciudad Bolivar. The plan entails the construction of parks, recreation centers and general service centers as well as promotion of businesses, tourism. The project puts in place infrastructure that enables the development of new economic activities (including commercial retail and recreational areas), thereby employment creation and promoting tourism in the area, among other activities. -Inclusiveness: the projects will continue demonstrating the transformational effect of redeveloping low-income urban areas. Transmicable strengthens the evidence that increasing access to markets and services for low income areas generates viable opportunities for private sector participation, economic development and poverty reduction. The projects can serve as a model to be replicated in other low-income areas in Bogota and across Colombia.

1. Knowledge sharing and expertise. IFC is using its technical know-how and is providing feedback to improve the projects outcomes. IFC's Engineer engaged with the city to provide constructive feedback on the designs for the Caracas Sur project and the Operation and Maintenance contract of Transmicable. For the Transmicable operation contract, there was a constant dialogue with the Project Manager to ensure that all relevant conditions were thought through and included in the documents. 2. E&S. IFC is helping to establish adequate E&S management systems and ensure compliance with IFC's E&S Performance Standards (PSs), in particular related to the expropriation and resettlements, in this projects and other projects to come. IFC's Additionality include: (i) IFC has requested to raise the E&S Standards currently used by the municipality (i.e increase the resettlement standards, hiring an independent auditor to do ex-pos valuation to monitor the process); (ii) IFC has helped the City achieve interinstitutional coordination among the different agencies of the municipality with the purpose of finding innovative solutions to comply with IFC PS and ensure that the action plans/commitments will be met; finally (iii) through Advisory Services, IFC has provided support through consultants and workshops that have helped IDU strengthen their internal capacity to improve (a) the resettlement standards and processes, across all projects executed by IDU, and (b) the engagement with the impacted communities throughout the life of the project to promote an inclusive and productive dialogue and a smooth transition to the operation phase.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.