News / MegaProject 786: Peru analyzes options for Lima metro line 2 PPP

MegaProject 786: Peru analyzes options for Lima metro line 2 PPP

🕔 September 30, 2016
UK politicians urge reconsideration of PPP projects

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According to local sources, the Government of Peru is negotiating changes to the concession of Lima's metro Line 2 with the group of companies responsible for its development to lower costs.

The Peruvian government and the consortium Nuevo Metro de Lima, formed by Dragados, Iridium, Impregilo, FCC, Cosapi and Ansaldosigned the contract in 2014 for the construction and operation of the project, one of the largest infrastructure projects in Latin America.

According to the Economy Minister, Alfredo Thorne, negotiations include building part of the railway line on the surface instead of underground. 

Mr. Thorne also said in a presentation:

"The previous government left a contract and we have try to renegotiate it in order to achieve benefits for the country but we would not like to reach an international arbitration." 

Construction of the second line has suffered delays due to expropriations and some government permits, according to sources. Works are now planned to be finished by 2019.

The original investment amount was supposed amount to €4.08 billion (US$5.65 billion), with €3.02 billion (US$4.18 billion) contributed by the state and €1.06 billion (US$1.47 billion) by the consortium.

The concessionaire is responsible for financing, design, construction, electromechanical equipment, provision of rolling stock, operation and maintenance of the project for a period of 35 years. The scheme involves a 27km east-west metro line with 27 stations and an 8km airport branch with a further eight stations.

Metro Line 2 is part of a network that integrates five lines: Line 1, now operational, and three other lines still in the process of being implemented.

Currently, Lima has an electric train operated by Odebrecht that crosses part of the city from north to south.

Lima, like many large cities in Latin America, is trying to solve transport problems in a city that concentrates one third of the 31 million Peruvians.

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