Since early 2023, the temporary suspension of toll increases under the administration challenged nearly four decades of financial stability in concessions and led to legal claims resulting in state liabilities. The toll freeze disrupted cash flows vital for private investors and lenders, complicating access to financing and threatening ongoing and future projects, particularly within the 4G and nascent 5G road concession programs. As of September 2025, only four of the seven initial 5G road projects are actively under construction, with progress ranging between 10% and 39%, while the second 5G wave remains stalled at the pre-construction stage.
Despite these setbacks, the government maintains progress claims, citing the $3.4 trillion APP award for the La Dorada–Chiriguaná rail corridor and plans to contract the Estanquillo–Popayán highway with over $7 trillion investment. However, the execution of national infrastructure budgets remains below expectations, with only 7% disbursed by April 2025, placing over 100 critical projects at risk. The reduced execution contrasts with a 12.7% growth in civil works GDP in early 2024 and isolated regional advances such as Bogotá’s Metro Line 1 reaching 44.5% completion by late 2024.
Environmental permit delays and governance challenges further impede progress, affecting key projects like RegioTram de Occidente and Canal del Dique. The prevailing regulatory ambiguity, combined with fiscal limits and political instability, continues to erode investor confidence. Although the sector anticipates moderate growth of around 2% in 2025 and improved sentiment linked to potential political changes, sustained recovery depends on clear regulatory frameworks, timely budget execution, and restored trust in the APP model as the backbone of Colombia’s infrastructure development.
This article was curated and published as part of our South American energy market coverage.
