PUBLIC TENDER FOR THE "MACHO TRAIN" MODERNIZATION PROJECT ATTRACTS INTEREST FROM SEVEN COMPANIES
Lima, November 8, 2023.- Private Investment Promotion Agency (PROINVERSIÓN) reported that the international public tender for the modernization project of the Huancayo-Huancavelica Railroad (Macho Train), to date, attracts the interest of seven companies specialized in the development of railway projects.
These companies, which include railway project operators, construction companies, rolling stock suppliers, among others, come from the Latin American region, Europe and Asia.
The deadline for prequalification as a bidder expires on November 30, 2023. At the close of this date, it will be verified if the seven interested companies, and others that join in the following days, will present themselves individually or in a consortium.
“We have received a request from the Ministry of Transport and Communications (MTC) to add an additional component to the project, for which we are already working with the sector updating the information and inspecting the project area. This in turn has been communicated to stakeholders, and we already have bilateral meetings scheduled to answer any consultations they may have,” said the project director of PROINVERSIÓN, Gian Carlos Silva. According to the official, after that, the Final Version of the Concession Agreement will be concluded to be approved by the entities that are part of the PPP system: the Ministry of Transport and Communications, the MEF, the regulatory body and the Office of the Comptroller General of the Republic. The award is scheduled for the First Quarter of 2024.
The interest of first-level investors and operators would be due to the fact that PROINVERSIÓN has recently incorporated an additional mechanism to mitigate the geological risk of the project, as well as the update of the investment cost called CAPEX (which includes civil Works and mechanical equipment, rolling stock and initial maintenance), which now amounts to approximately US $340 million (without IGV). “It has been updated considering the need for initial interventions, to ensure the proper functioning of the project,” said Gian Carlos Silva.
PROINVERSIÓN planned to award this project in December of this year, but this deadline has been extended to the First Quarter of 2024 in response to the request of the MTC and in turn to requests from interested companies to extend the expected deadline, so that they can submit solid offers and thus ensure greater competition and the success of the international public tender.
THE PROJECT
The Huancayo-Huancavelica Railroad has been operating since October 1926. It has 128.7 kilometers of travel, seven (7) stations, 20 stops, 15 bridges and 38 tunnels, which will be modernized. The infrastructure will be renovated, with new rolling stock and a signaling and control system that will guarantee a safe, efficient and comfortable transportation system for users, with seven (7) daily circulations in each direction. In addition, a new repair and maintenance workshop will be built, a drainage system will be constructed, slopes will be protected and stabilized, and most importantly, the superstructure of the railway will be renovated.
The project, which is promoted by PROINVERSIÓN at the request of the MTC, will be granted for 30 years, to provide transportation services to the population, meeting international quality standards for the benefit of more than 1.2 million people in both departments.
To ensure that the current social tariffs are maintained, the MTC (grantor sector of the project) will be responsible for fixing them, allowing more users to benefit from modern transport.
Source: Press Release - PROINVERSIÓN