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Companies / Entities
- Ferrovia Centro-Atlantica S.A.
- Ministerio de Transportes y Comunicaciones
- Agencia de Promoción de la Inversión
Keywords
Railroads | Privatization/Concession
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MeneamePeruvian rail company Ferrovías Central Andina (FCA) plans to participate in the international tender process to rehabilitate the 124km Tren Macho railroad to run between the inland cities of Huancayo and Huancavelica, local press reported.
"We still do not know when the government will start the tender process for the route, although the basic plan about what is required to make the railroad operable has been decided," Ferrovías Central Andina president Juan de Dios Olaechea told BNamericas.
"We estimate the cost of renewing the track and rolling stock is about US$18mn which will have to be provided by the government because the region of Huancavelica is the poorest in the country and would not be able to provide the revenues that would interest a private investor," he said.
The Spanish government offered to provide US$18mn in financing to modernize and extend service on the Tren Macho rail link. The loan is to be repaid over 20 years with a 12-year grace period at 1% annual interest.
The transport ministry (MTC) is in charge of the concession process and has set up a committee with the economy ministry, and the chairman of the national decentralization council CND, the director of the investment agency ProInversión and the presidents of Huancavelica and Junín regions through which the reconditioned railroad will pass.
The committee will coordinate and oversee the work.
As it currently operates, the rail link runs from Huancavelica, capital of the same name department, to Junín department capital Huancayo on a seven-hour, once-a-day odyssey with regular breakdowns in service.
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