By Andrés Pachón | 2024-12-04

BOGOTÁ -- China's investment and development of infrastructure projects across Latin America and Colombia pose a significant threat in terms of corruption and unseen economic repercussions, say experts.

Infrastructure projects led by Chinese state-owned companies are aimed at sustaining Beijing's global influence -- even at the cost of regional upheaval, warned Francisco Santos, former vice president of Colombia and former Colombian ambassador to Washington, in an interview with Entorno.

One such infrastructure project is the Bogotá Metro project, now under construction by a Chinese consortium.

On October 16, 2019, Bogotá awarded the contract for the first section of the city's elevated subway to China Harbour Engineering Company (CHEC) and Xi'an Metro Company, both owned by Beijing.

The consortium secured the bid by underbidding two rivals.

It bid 13.8 billion COP (approximately $3.1 billion).

The Bogotá Metro project spans 23.9km and was initially slated to begin in 2020. However, construction commenced only in August 2021, plagued by multiple delays and allegations of corruption during the contract-awarding process.

Bogotá, home to almost 8 million residents, remains one of the few Latin American capitals without a subway system.

The first phase is designed to transport 72,000 passengers per hour using 20 trains.

Despite financial backing from the Inter-American Development Bank, World Bank and European Investment Bank, concerns persist about the lack of experience of CHEC and Xi'an Metro in subway construction.

Data security concerns

The risks extend beyond construction delays, said Santos. China will operate the subway system for 25 years following the completion of its first phase, expected in early 2028.

This long-term operation raises significant concerns about user data.

"All Bogotá Metro user data will be digitized and supported by facial recognition systems," Santos explained. "While this information will ostensibly be managed by the Colombian government, the real beneficiary will undoubtedly be China, as the system operator."

Santos further warned of China's track record in leveraging data.

"The Chinese always ensure a back door exists, granting them access to this information. They use it not only in military applications but also in advancing artificial intelligence and other, more questionable endeavors," he cautioned.

These developments are closely tied to China's Belt and Road Initiative (BRI), launched in 2013, he said.

Also known as the New Silk Road, the BRI is a multibillion-dollar investment strategy aimed at expanding China's global trade reach through the construction of transport infrastructure, including key projects in Latin America.

To date, more than 100 countries have joined the initiative. Colombia may soon follow, as Bogotá and Beijing recently established a working group to explore the nation's potential participation in the BRI.

"We have formed a joint working group to build consensus and, within a reasonable time frame, explore Colombia's potential adherence to the [BRI]," Colombian Foreign Minister Luis Gilberto Murillo announced in Beijing October 10.

Negligent practices

Colombia has become a focal point for major infrastructure projects spearheaded by Chinese state-owned companies.

Among these is the Regiotram de Occidente, a light rail system designed to connect Bogotá with nearby municipalities. It is under construction by the China Civil Engineering Construction Corporation (CCECC).

CCECC is under investigation for bribery, money laundering and other alleged irregularities in Peru, Nigeria, Georgia and at least seven other countries.

Another major initiative is the Autopista al Mar 2, a 254km-long highway designed to connect Medellín with the Gulf of Urabá in Antioquia.

CHEC, the firm leading the construction of that project and of Bogotá's subway, has faced accusations of corruption, mismanagement, substandard materials and irregularities in protected zones.

These issues have surfaced in Bolivia, Costa Rica, Honduras, Jamaica and several other countries where it participates in major infrastructure projects.

China has secured contracts for major infrastructure projects in Colombia in recent years by substantially underbidding competitors -- a strategy later offset by cost overruns or long-term operational agreements, such as in the case of the Bogotá Metro.

Juana Afanador, a sociologist and leader of the citizen oversight committee for the subway project, called Colombia's acceptance of impossibly low Chinese bids "harmful and risky."

"The result is that cost overruns during construction end up compensating for the initial low bid," she said.

Speaking with Entorno, Afanador highlighted irregularities during the bidding process for the subway's first section, alleging collusion in favor of CHEC.

"By the time the contract was awarded to CHEC, the other two bidders had already withdrawn, raising serious concerns about transparency," she argued.

Afanador also pointed out the challenges in fostering an informed debate about the subway project because of the political interests surrounding it.

"The legal record of CHEC in other countries -- marked by cost overruns and bribery -- is deeply troubling and reveals a company unworthy of trust," Afanador stated.

CHEC's ability to keep winning rigged tenders "represents a modern form of colonialism disguised as the New Silk Road," she said.