Colombia’s government has teamed up with Canada’s Caisse de dépôt et placement du Québec and local pension funds to create a 3 trillion peso (US$926 million) private equity fund to invest in domestic infrastructure, the finance ministry said on Tuesday.
The fund will focus on energy, including renewable energy, transportation, water, basic sanitation, telecommunications and other infrastructure, the ministry said in a statement.
The Caisse, one of Canada’s biggest public pension funds, will contribute 1.53 trillion pesos ($627 million) and the remainder will come from the state’s National Development Financer (FDN) and local pension funds Colfondos, Old Mutual, Porvenir and Proteccion, the ministry said.
“It’s the largest fund the country has had for these purposes in terms of capital contribution,” President Ivan Duque said in a statement.
“There’s confidence in our idea of attracting more investment that translates into the transformation of the quality of life of Colombians and the creation of equity.” he said.
The resources will be managed by Infrastructure Asset Management Colombia SAS, a subsidiary of the FDN.
(Reporting by Nelson Bocanegra and Helen Murphy; Editing by Steve Orlofsky)