IDB Approves Financing for Line 2 of the Bogota Metro

The Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects of $415 million and an initial credit of $50 million under this line to help finance the Line 2 Program of the metro system in Bogota, Colombia. The financing will partially cover the concession contract for the construction works and the project management.

The second line of the city’s metro will be a heavy rail line, primarily underground, spanning 15.5 kilometers and 11 stations.

The overall objective of the Credit Line and of the first operation approved by the IDB Board of Directors is to enhance mobility in Bogota by encouraging the use of public transportation through improved service, which will also lead to better air quality for residents in the vicinity of metro line 2. The program will directly benefit 1.3 million residents with savings in travel time, reduced vehicle operating costs and potential real estate development.

Despite advances in public transportation and improvements in recent decades, Bogota still has a high level of traffic and gaps in service coverage in areas with high travel demand and lower socioeconomic development. This situation limits the well-being of residents. In response, the national and district governments have prioritized expanding the metro system with a second line to provide accessibility to the residents of the northwestern part of the city.

Suba and Engativá are the Bogota localities with the first- and third-highest number of trips during morning rush hours, respectively. By 2032, these areas are expected to house the largest number of residents in the city – totaling 2.3 million people – which will increase travel demand.

The current and future demand in these areas exceed the capacity of the public transportation system, and residents experience longer travel times than the city average due to slow travel speeds on roads.

Metro line 2 presents an optimal and sustainable solution that complements an urban mobility model that involves the densification of Bus Rapid Transit (Transmilenio) routes and the construction of metro line 1, financed through a $600 million credit line from the IDB.

The electric train technology of line 2 is expected to reduce greenhouse gas emissions by 800 tons annually, resulting in a significant reduction in air pollution in the city. The new line will also enhance accessibility for users with reduced mobility, improve safety for women by implementing measures against gender-based violence, and elevate comfort levels.

The first credit operation will support the financing of works that include tunnel construction, stations, a work yard, and the reconfiguration, adaptation and equipping of universally accessible urban public spaces and roadways along the metro route. The operation also includes social and property management.

The $50 million credit has an eleven-year amortization period, a ten-year grace period, and an interest rate based on SOFR.

About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region.