Proinversion driving US$1bn road concessions

Friday, July 5, 2002

Peru's privatization body Proinversion is promoting a US$1bn-plus private sector investment program that would ensure 6,700km of paved highway reaches international quality standards, a transport ministry spokesperson told BNamericas.

In May a consortium of local firms Grana y Montero and JJ Camet picked up a US$88mn-100mn concession for the Ancon-Huacho-Pativilca, or route 5, stretch in central Peru. Construction is scheduled to start in 1Q03.

Last month authorities closed the sale of bidding rules for a US$205mn concession for route 6, between Puente Pucusana and the city of Ica, some 300km south of capital Lima. Technical offers are due November 26 this year and bids January 23, 2003 with work to start in July.

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In addition Proinversion's road projects director Orlando Olcese said studies are being prepared for other projects, whose bidding processes are penciled in for next year. These include routes 1, 4 and 9 for a combined investment of some US$320mn.

Northern route 1 would require a concessionaire to spend US$103mn to build a 37km highway between Piura and Sullana, a 10km link to the city of Tumbes and rehabilitate the Paita-Sullana highway and accesses to Talara, Puerto Pizarro and the narby airport.

The 941km route 4 concession would involve US$180mn to build a connecting road to Chimbote port and upgrade the Huallanca-Santa, Catac-Chavin and Yungay-Llanganuco highways. While route 9 would see US$37mn spent on 645km between the city of Cusco and Desaguadero on the Bolivian border, including the Cusco tourist circuit.

The concession program also includes routes 2, 3, 7, 8, and 11; however, authorities are yet to establish official bidding schedules for these.

Route 2 would see US$131mn spent along 540km in the departments of Piura and Lambayeque; route 3, US$146mn along 506km in Lambayeque, La Libertad and Cajamarca departments; route 7, US$44.2mn on 550km in Ica and Arequipa; route 8, US$115mn on 1,057km in Arequipa, Moquegua and Tacna; and route 11, US$229mn on 917km in Lima, Junin, Pasco, Huánuco and Pucallpa departments.

No one at Proinversion was available to comment on the implications on the road concession program of the government's recent decision to rethink its privatization program following violent disturbances in the run up to planned sell-offs of power generators Egesur and Egemsa.