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Nuevo Metro de Lima consortium has raised a total of US$1.15 billion trough a bond issue for the construction and operation of Lima's second metro line, one of the largest infrastructure projects in Latin America.
The total cost of the project is estimated at over US$5.8 billion. The scheme involves a 27 km east-west metro line with 27 stations and an 8km airport branch with a further eight stations.
The concessionaire will be responsible for financing, design, construction, electromechanical equipment, provision of rolling stock, operation and maintenance of the project for a period of 35 years.
In 2020, when all its phases are in operation, the underground transport system will connect the districts of Lima (Ate, Santa Anita) with the center of Lima and Callao and will join Metro Line 1 (Villa El Salvador - San Juan de Lurigancho) and Metropolitan Line 1 (Chorrillos - Independence) with north-south routes.
The new underground transport system will allow passengers to cross the city from east to west in 45 minutes, as opposed to the more than two hours the trip currently takes by car. It will also significantly reduce the costs of transportation, the number of traffic accidents and emissions of greenhouse gases in the metropolitan area.
In December 2014 the Inter-American Development Bank (IDB) provided a financial package composed by a US$300 million loan to the Ministry of Transportation and Communications and non-sovereign guaranteed loans to Metro de Lima Línea 2 of up to US$400 million and US$50 million, respectively, from IBD's ordinary capital and the China Co-financing Fund for Latin America and the Caribbean, administered by the IDB.
The Peruvian government and the consortium Nuevo Metro de Lima signed on 28 April 2014 the contract for the project. Metro de Madrid advised the winning group for the project.
We have recently reported about several PPP projects in Latin America: