Inco to launch US$440mn Ferroviario Central railway concession tender

- Friday, December 17, 2010

Inco to launch US$440mn Ferroviario Central railway concession tender

Colombia's national concessions institute Inco plans to launch a tender in 2011 to concession the country's Ferroviario Central railway system, an official from Inco's railway project division told BNamericas.

The system will total 1,045km, connecting districts Villa Vieja, in southern department Caldas, to Chiriguana, in Cesar department.

The concession contract will involve the rehabilitation, maintenance and operation of the line, providing passenger and cargo transport services.

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The project was first launched for tender in 2009, with an estimated budget of US$440mn. However, the process was declared void after corruption allegations.

At the time, the project attracted two bidders: Consorcio Sistema Ferroviario Central, comprising Spanish firms Ferrocarriles Españoles de Vía Estrecha (Feve) and Construcciones y Proyectos de Asturias (OCA); and Sistema Ferreo Central, made up of Colombian firms Odinsa and Valores y Contratos (Valorcon), and Noreing of the US.

Following the failed tender, Inco decided to revise the project, and is currently drawing up its technical details and financial structure.

The government expects to award the concession contract in 2012, the official said.

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