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Nuevo Metro de Lima consortium has signed a US$800 million loan for the construction and operation of Lima's second metro line (Peru), one of the largest infrastructure projects in Latin America.
The new loan bring the funds raised by the consortium to a total of US$1.955 billion.
Nuevo Metro de Lima consortium is composed by ACS, Fomento de Construcciones y Contratas (FCC), Salini Construttori, Finmeccanica and Cosapi. It 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.
The total project investment is estimated at US$6.5 billion. The total announced financing, which represents a 30% of the total project investment, is composed of bonds and a loan provided by several banks:
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 metro PPP project involves the development of a 27 km east-west metro line with 27 stations and an 8 km airport branch with a further eight stations. 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.
We have recently reported about several PPP projects in Latin America, they are among others: