Lima electric train back on track

Thursday, September 15, 2005

Peruvian capital Lima's private investment promotion entity Cepri has made bidding rules available until September 23 for the city's US$190mn electric rail project, a project official told BNamericas.

Further, Cepri will receive commentary on contract documents until the end of the month, he said.

The project involves building an extension to the existing urban train link from Puente Atocongo in the downtown area to Grau avenue. Pre-qualifying bids will be received until October 14, the official added.

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The process was originally launched in 2003 but was then suspended due to financing questions. Since then Peru's President Alejandro Toledo signed a decree authorizing Lima municipal council to take on debt to finance the project which will be supervised by the electric train authority AATE.

The government pledged to guarantee up to US$120mn of the build and operate project.

The continuation of the bidding process was also pending the approval of a bill to exempt from duties the import of the project's rolling stock. Congress and the president have passed the bill into law.

The concession would run 33 years.

The project's first stage wrapped up in 1995, while second stage works include the 12km, nine-station Puente Atocongo-Grau avenue stretch, bringing the train's reach to a total of 22km and 16 stations.

Currently, one million residents living in the southern cone of Lima benefit from electric train services, while two million will benefit when the line is complete, with some 110 million passengers a year expected to use the system.