Colombian government authorities will award the Corredor Férreo Central rail concession during the first half of 2009, national planning department (DNP) head Carolina Rentería told BNamericas.
Authorities will launch the concession tender during the fourth quarter of this year, Rentería said, adding that the tender process will take an estimated six months.
PROJECT FINANCING
The initiative, also known as Magdalena Medio, will require an estimated US$900mn, an official from DNP's infrastructure division told BNamericas.
The national budget is expected to partly finance the initiative with about 770bn pesos (US$355mn), of which 366mn pesos will cover rehabilitation and reconstruction, and 405mn pesos will cover maintenance works, said the official.
The 30-year public-private partnership totals 1,214km, of which 793km will be operated by the winning private firm.
The project connects northwestern department César to central Caldas department and includes the construction of an extension to link up with department Tolima, the official added.
The system will handle containers, bulk, coal, cement, steel and paper, among other products, said the official.
The private operator will be responsible for reconstructing and rehabilitating the system, carrying out maintenance works and operating the line for three decades, as well as providing the necessary rolling stock, the official said.
The rail initiative seeks to improve cargo transport from the country's central area to the Caribbean, reducing transport costs and improving logistics, the official said.
The train system will also connect to another railway network in department Antioquia.
