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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.