Peru to award rail concession in H2 2016

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Peru to award rail concession in H2 2016

Peru's private investment promotion agency ProInversion has recently presented the Huancayo - Huancavelica rail rehabilitation PPP project to potential developers in Spain. 

The project, which is already in tender process, is expected to be awarded by the second half of 2016.

After the presentation, the agency hold bilateral meetings with potential bidders that had expressed interest in the project. The firms interested in the project are, among others: 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 opperations 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.

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