PROINVERSIÓN awards the modernization project of the Huancayo – Huancavelica Railway

ProInversion Statement

This is an automated translation of the press release issued in Spanish

The modernization of the emblematic 98-year-old railway transport will soon become a reality. The Private Investment Promotion Agency – PROINVERSIÓN awarded today to the Consorcio Concesionaria Ferroviaria del Centro (who presented the company Benito Roggio Transportes SA as railway operator) the project to modernize the Huancayo – Huancavelica Railway, known as “Tren macho”

The project awarded by the Ministry of Transport and Communications (MTC) aims to provide a safe, efficient and reliable rail transport service for 1.2 million inhabitants of Junín and Huancavelica.

The total cost in nominal terms is US$ 565 million, that is, US$ 445 million of main investment (modernization) and US$ 120 million in operation and maintenance expenses for the first 10 years of operations.

It also includes the design, financing, execution of works, acquisition of rolling stock, operation and maintenance for 30 years of the 128.7-kilometer railway, as well as the construction of a new repair and maintenance workshop, drainage system, slope protection, renovation of the railway superstructure, among other components.

With the implementation of the project, the region will have a renovated and modern infrastructure, new rolling stock and a signaling and communication system that will guarantee a safe, efficient, modern and comfortable transport system for users.

In this sense, it will be a driving force for socioeconomic development in the regions of Junín and Huancavelica, since it will boost the tourism and agricultural potential of the area and facilitate the population's access to health, education, employment and commercial centres.

The award ceremony was attended by the Minister of Transport and Communications, Raúl Pérez – Reyes; the Regional Governor of Junín, Zósimo Cárdenas; the Regional Governor of Huancavelica, Leoncio Huayllani; the Mayor of the Provincial Municipality of Huancayo, Dennys Cuba; the Mayor of the Provincial Municipality of Huancavelica, Toribio Wilfredo Castro; the Executive Director of PROINVERSIÓN, José Salardi; among other authorities.

To ensure that current social fares are maintained, the MTC (the sector granting the project) will be responsible for setting these fares, allowing more users to benefit from modern transport.

The project constitutes a co-financed PPP, whose contractual modality is that of a Concession Contract, for a period of 30 years from the signing of the contract: five (5) years for the design and construction and 25 years for operation and maintenance.

The project includes the reconditioning of seven (7) stations and 20 stops: Chilca, Manuel Tellería, Izcuchaca, Mariscal Cáceres, Acoria, Yauli and Huancavelica. And it will have six (6) daily circulations in each direction exclusively for passengers, during the 7 days of the week, and one (1) daily circulation in each direction, mixed transport of passengers and goods, during 6 days a week.