Pension Fund Resources In Colombia Will Help Financing Of Infrastructure Projects Under The PPP Scheme

By late July 2015, Colombians had about 149 trillion pesos saved in mandatory pensions, plus 13 trillion in voluntary pensions and more than 9 trillion in severance funds. Some of these resources, which are managed by pension fund administration firms, may now be allocated to finance infrastructure projects in Colombia under Public Private Partnerships ("PPPs").

This document briefly highlights the regulatory changes that allow using the above resources to finance infrastructure projects.

Regulatory Changes

By means of Decree 1385 of June 22, 2015, the Ministry of Finance amended Decree 2555 of 2010 as it relates to the investment regime for mandatory pension and severance funds, insurance companies and capitalization firms. The change aims at facilitating the participation of institutional investors in the financing of infrastructure projects undertaken in the form of PPP projects; it focused on the requirements for investment in assets where the issuer is a