Tender to modernize the Huancayo - Huancavelica Train enters final stage

ProInversión press release

This is a machine translation of the original release, issued in Spanish

June 4, 2024

The public tender to modernize the Huancayo – Huancavelica Railway is in the final stage, which will be awarded in the third quarter of 2024 and requires US$ 394 million as an investment amount, said the Private Investment Promotion Agency – PROINVERSIÓN.

The final version of the concession contract already has the favorable opinion of the Ministry of Transport and Communications ( MTC ) and the Supervisory Body for Investment in Infrastructure and Transport for Public Use ( OSITRAN ), pending review by the Ministry of Economy and Finance ( MEF ) and later the Comptroller General of the Republic, respectively.

The contract contains the rights and obligations of the parties (State and concessionaire), the allocation of risks and the economic-financial structure of the project, among others; establishes the framework of the contractual relationship between the parties in the project execution phase. The final approval of this document will trigger the project award date scheduled for July 2024.

A relevant fact is that the aforementioned initiative has the budgetary capacity to assume the investment cost (US$ 394 million) and all the firm commitments of the MTC; The budgetary feasibility was approved by the MEF and supported by the MTC. In that sense, the public tender has been receiving the support and commitment of the actors involved.

To date, the contest has three prequalified bidders to present technical and economic proposals in the bidding process and be in charge of financing, construction, acquisition of rolling stock, operation and maintenance of the railway.

Those prequalified for the railway project are the Consorcio Ferrocarril HH (Sociedad Anónima de Obras y Servicios , COPASA Sucursal del Perú and Ferrocarril Wanka SAC), Consorcio Concesionaria Ferroviaria del Centro (Construccion y Gestión SA and Hidalgo e Hidalgo SA) and the company Mota- Engil Perú SA , by complying with the technical experience in construction and operation of railway projects and financial solvency required in the bases.

The initiative will modernize 128.7 kilometers of railway, which will facilitate a safe, efficient and reliable transportation service for the benefit of 1.2 million inhabitants of Junín and Huancavelica. Likewise, it will be concessioned for 30 years (5 years for design and construction, 25 for operation and maintenance) and includes the improvement of the existing railway superstructure.

It also includes the reconditioning of the seven stations and 20 stops, and will have seven (7) daily circulations: six daily circulations in each direction exclusively for passengers and one daily circulation in each direction, mixed transport of passengers and goods.