Congress okays land expropriation for Lima electric train

Thursday, January 10, 2008

Peruvian legislators have approved a bill that enables Lima's government to expropriate the lands necessary to continue the construction of an electric rail service for the capital and neighboring city Callao, congress reported in a release.

The system's concession is expected to be awarded at end-February.

According to a private investment liaison agency ProInversión official, companies from Italy, Spain, Brazil and Colombia are among those that have contacted authorities to request further information regarding the 40-year concession project.

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The project, handled by ProInversión, will consist of the concession of a 9.2km line connecting the city's Villa El Salvador and Atocongo districts, already built at a cost of US$300mn, and an 11.7km stretch between Atocongo and the 2 de Mayo hospital, which is yet to be built and has an estimated cost of US$280mn.

The train is expected to become the main mass transit system for those living in Lima and Callao.

The state will contribute with up to US$160mn to finance the project.

The concessionaire's revenue will be generated through fares and advertisements sold in the system.