Reconstruction in Cities in Colombia After Earthquake Would Cost up to US$8.4 Billion

The 7.4-magnitude earthquake that struck Colombia one month ago has left a devastating impact across five major cities: Cali, Pereira, Quibdo, Armenia, and Manizales. The Colombian Association of Capital Cities (Asocapitales) has reported that these cities are home to 128,463 affected families and 282,643 people, with 7,416 homes and 58,710 buildings rendered uninhabitable. Asocapitales estimates the reconstruction costs could reach an astounding 26 trillion pesos, equivalent to US$8.4 billion.

The earthquake's immediate aftermath focused on search efforts, humanitarian aid, and emergency response. However, Asocapitales acknowledges that recovery is now a more complex, long-term endeavor, necessitating a robust financial architecture. This includes leveraging territorial resources, redistributing national revenues, adopting flexible borrowing practices, providing tax relief, and offering credit for economic recovery.

Cali has seen progress in re-opening its education system, with 95% of students returning to in-person classes by early September. Pereira has also begun adjusting its financial strategies for reconstruction, redirecting funds to demolish debris and repair public infrastructure. Manizales has returned to nearly full normalcy, with most businesses open and educational institutions back in session.

Armenia's reconstruction plan includes 175 action items, while Quibdo's efforts intersect with broader infrastructure and territorial development challenges.