PROINVERSIÓN will award the modernization of the Huancayo – Huancavelica Railway at the end of August

ProInversion Statement

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

At the end of August, the Private Investment Promotion Agency - PROINVERSIÓN will award the project to modernize the Huancayo - Huancavelica Railway , known as "Tren Macho", which requires a total estimated cost of US$ 565 million and will benefit 1.2 million inhabitants in Junín and Huancavelica.

The total amount of the project is broken down into US$ 445 million of main investment (modernization) and US$ 120 million in operation and maintenance expenses for the first 10 years of operations.

According to the schedule, interested companies will present their technical and economic proposals on August 22, and the process will be closed with the successful bid on August 27.

There are three prequalified bidders for the contest, such as the HH Railway Consortium ( Society of Works and Services , COPASA Branch of Peru and Wanka Railway SAC), the Central Railway Concessionaire Consortium ( Construction and Administration SA and Hidalgo SA ) and the company Mota-Engil Peru SA

The award announcement is made after the publication of the final version of the concession contract with the obligations and responsibilities of the public and private sectors, project deadlines and schedule, risk allocation (State and private), dispute resolution mechanisms, guarantees and penalties, among others.

The modernization of the Tren Macho will be carried out through a Public-Private Partnership (PPP) for 30 years: five years for design and construction and 25 years for operation and maintenance. It has a 128.7-kilometer route, seven stations, 20 stops, 15 bridges and 38 tunnels that will be modernized (new rolling stock, signaling and communication system that will guarantee a safe, efficient and comfortable transportation system for users).

It also includes the construction of a new repair and maintenance workshop, drainage system, slope protection, and renovation of the railway superstructure, among other components.

The modern railway will have seven daily trips in each direction and will have a social rate set by the Ministry of Transport and Communications (MTC) as the grantor.