Peru lands second metro loan within a week

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Tuesday, December 9, 2014

A day after securing a loan from the Inter-American Development Bank (IDB), Peru secured additional financing from Caracas-based lender CAF for its US$5.8bn Lima metro line No.2 project.

CAF will lend Peru US$150mn, the third loan it has granted the initiative, the bank said in a statement. CAF previously lent Peru a total of US$600mn in two credits to finance line No.1 of the Metro, opened in 2011.

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"This approval complements the support CAF has been providing Peru in the search for urban transport solutions," CAF president Enrique García said in the statement.

The Lima metro is "a hi-tech, non-polluting transport system that will help improve living standards of the inhabitants of this city," he said.

The CAF loan came after the IDB announced December 4 it would lend Peru US$750mn for the metro. The Lima metro, which has already awarded studies for a third line, is Latin America's largest infrastructure project, Peru's President Ollanta Humala said.

A consortium made up of Spain's ACS and FCC, Italian companies Impregilo and AnsaldoBreda and Peru's Cosapi, which was awarded the 35-year concession in March, will build 35km of tunnels and 35 underground stations by 2020.

NATURAL DISASTERS

CAF added that it had also approved a regional US$300mn line of credit to finance initiatives related to the "prevention of and response to emergencies caused by natural disasters, epidemics and environmental incidents."

Member nations may apply for a loan of up to US$50mn each, the bank said in a separate statement.