J.D. González-Ruiz, C.A. Arboleda, S. Botero, E. Duque, J. Rojo

Pages: 73-84

Abstract
In Colombia, Public-Private Partnerships have emerged as a tool for increasing the development of infrastructure projects for highways. These projects have focused on economic highways and have set aside the social ones. This article proposes a conceptual framework based on shadow toll schemes, cash flows, and the three bands proposed by the World Bank, which are used in this article as mechanisms for funding rural highway projects. Strategic financial indicators were considered in designing the proposal. Thus, it is appropriate to encourage both private investment and financial mechanisms to promote projects which will have a social impact. In addition, this article introduces new policies to be implemented by the Colombian government with the aim of encouraging private investors to invest in social highways. As a result, it is expected that this work will contribute to enhancing the financing process in Colombia. It is concluded that to increase the development of rural highways, the creation of a debt fund with an investment focus on social projects is mandatory. Future research opportunities on this topic are identified.

Keywords: rural highway; infrastructure; shadow toll; project evaluation