Medellín has secured financing for its first public-private partnership (PPP) prison, a $168.75 million USD project aimed at addressing long-standing issues of overcrowding and human rights concerns within the city’s correctional system. The new 1,339-inmate facility, currently under construction in the San Cristóbal district, will be dedicated to pre-trial detainees, bringing Medellín into compliance wiht national regulations. This landmark initiative marks a significant step toward modernizing public services through increased collaboration between public and private sectors in Colombia.
Medellín is moving forward with the construction of its first public-private partnership (PPP) prison, a project considered a landmark initiative for cooperation between Colombia’s public and private sectors.
On Tuesday, Grupo Aval announced the financial closing of the Medellín Metropolitan Prison (CMM) project, which will serve the incarcerated population of the Antioquia capital. The 215 billion peso (approximately USD $53.75 million) financing was provided solely by Banco de Occidente and Banco de Bogotá, with financial advisory services from Aval Banca de Inversión.
The total investment in the new correctional facility, currently under construction in the San Cristóbal district, exceeds 675 billion pesos (approximately USD $168.75 million). The prison will have a capacity of 1,339 inmates.
Panoramic view of the prison construction. Photo:Medellín City Hall
Prodemex, a leading regional firm specializing in large-scale infrastructure projects, is the sponsor, designer, operator, integrator, and constructor of the initiative.
The project encompasses the construction, maintenance, and operation of the new detention center, which will be the first in Medellín dedicated exclusively to individuals awaiting trial. This move brings the city into compliance with regulations requiring local administrations to build and operate prisons for pre-trial detainees.
Grupo Aval stated that the initiative represents a significant step in modernizing public services and fostering collaboration between the public and private sectors.
The project is expected to improve the living conditions of thousands currently housed in overcrowded penitentiaries and police stations, conditions the Constitutional Court has deemed violations of human rights and indicative of an unconstitutional state of affairs.
Machinery used for the construction of the project. Photo:Medellín City Hall
Company representatives highlighted the project’s substantial social impact, emphasizing its aim to improve the dignity of correctional services and modernize a system facing significant structural challenges related to overcrowding and inadequate conditions.
“From Aval Banca de Inversión, we reaffirm our commitment to the development of social infrastructure and to supporting strategic initiatives in Medellín and its surrounding area,” said Luis Carlos Sarmiento Carvajal, president of Aval Banca de Inversión. “The financial closing of this PPP sets a precedent by integrating the efficiency of the private sector into the operation of support services, creating a more dignified and efficient model of public management.”
He added that the project “is the result of joint work between the Medellín APP Agency, the Medellín District, and the private sector, with Prodemex as sponsor and Grupo Aval as financier.”
Officials from the entities in charge of the new Medellín Prison. Photo:Medellín City Hall
The transaction received legal counsel from Martínez Quintero Mendoza González Laguado & De La Rosa for the lending banks, while Prodemex was advised financially by Profit Banca de Inversión and AFI Asesoría Financiera en Infraestructura, with legal support from Brigard Urrutia.
MORE INFORMATION IN THE JUSTICE SECTION
