Proinversion publishes final contract for rail PPP
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Peru's private investment promotion agency ProInversion has recently published the final contract for the Huancayo - Huancavelica rail rehabilitation PPP project.
The publication of the final contract means that the process will re-start soon and the award of the project is expected for the second half of 2016.
As we reported in January, the agency held bilateral meetings in Spain with potential bidders that had expressed interest in the project: Obrascón Huarte Lain (OHL), TORRESCÁMARA, Sacyr - Concesiones, Cintra, Iridium Concesiones de Infraestructuras, Vias y Concesiones, and Alava Ingenieros.
The 'Tren Macho' train, which covers the Huancayo - Huancavelica route, re-started operations in December 2011, after being out of service for five years. The railroad project started to be built in 1907 but it wasn't finalized until 1933. It has a length of 128 Km.
This PPP project involves the upgrade of the mentioned rail line. The preferred bidder will be responsible for the design, upgrade, finance, operation and maintenance of the line during the concession period. It will be also responsible for the provision of the rolling stock, among others.
The total project investment is estimated at US$167 million for construction works and US$52 million for the rolling stock.
Access to tender documents here.
In December 2013, ProInversión awarded the preparation of feasibility studies for the project to consortium composed of TRN Ingeniería (Spain), Geocontrol (Spain), Geoconsult (Peru) and TP Invest (Peru).
Recent developments in the market
In late June, Proinversión launched a tender process to hire a transaction advisor for the Lake Titicaca sewage treatment plants project.
We recently announced that Odebrecht Latinvest has reached an agreement to sell 57% of Rutas de Lima road concession to Brookfield.
Additionally, a team of Tisco and Graña y Montero submitted in May an unsolicited proposal to develop a light rail project in Arequipa through the public private partnership (PPP) model.
Country news
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June 29, 2016
Odebrecht announces sale of Peruvian road project to Brookfield
Odebrecht Latinvest has reached an agreement to sell 57% of Rutas de Lima road concession to Brookfield. Upon completion of the sale, Rutas de Lima will be owned by Brookfield and its institutional partners (57%), Odebrecht Latinvest (25%) and Sigma (18%). Read more -
June 28, 2016
Proinversion to hire TA to assess Lake Titicaca wastewater private initiative
Proinversión, the agency of the Government of Peru responsible for promoting investment and privatization, has launched a tender process to hire a transaction advisor for the Lake Titicaca sewage treatment plants project. Read more -
May 20, 2016
Tisco Graña y Montero submit unsolicited proposal for arequipa light rail PPP
Tisco, Graña y Montero have submitted an unsolicited proposal to develop a light rail project in Arequipa, Peru, through the public private partnership (PPP) model. Read more -
May 05, 2016
Acciona completes wastewater plant in Lima
The President of the Republic of Peru, Ollanta Humala, has recently inaugurated the Wastewater Treatment Plant and Underwater Outlet of La Chira, which has been developed by a joint venture formed by ACCIONA Agua and the local company Graña y Montero in Lima. Read more -
April 22, 2016
Proinversion to declare viable Titicaca lake wastewater PPP
Proinversión, the agency of the Government of Peru responsible for promoting investment and privatization, has recently announced that the Lake Titicaca sewage treatment plants project at the Lake Titicaca, one of South America's largest lakes, could be declared viable in the last quarter of 2016 as a private initiative (PI). Read more
