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GyM Ferrovías has concluded the financial closing of the expansion project of Line 1 of the Lima Metro.
GyM Ferrovías comprises Peruvian developer Graña y Montero (75%) and Ferrovías (25%), a subsidiary of Argentine holding company Grupo Emepa. In 2016 it signed a contract to complete a US$410 million expansion of the service.
The 17-year loan amounts to approximately US$316 million, which will permit the acquisition of 20 trains and 39 Alstom cars, as well as the improvement and expansion of 5 train stations (electric reinforcement, expansion of stations, additional garages, increase of 8 links - double exchanges and construction of the second access to the Villa el Salvador train yard) that will help expand the capacity of the Line 1 service.
The financial entities involved in the financing of the expansion were Mizuho Securities USA LLC and Mizuho Bank, as structuring agents; Mizuho Bank, as administrative agent; and Mizuho Bank and Sumitomo Mitsui Banking Corporation, as mandated lead arrangers.
Thanks to this project, the frequency of trains during peak hours can be reduced by half, from six to three minutes, and the number of clients transported per day will increase from 320,000 to 500,000.
With these works, Line 1 of the Lima Metro reaffirms its commitment to remain the most reliable, modern and safe transportation system in Peru, with the aim of improving the quality of life for millions of people.
GyM Ferrovías signed a 30-year PPP concession in 2011 with the Peruvian Ministry of Transport and Communications (MTC) to operate and maintain Line 1, which runs between Villa El Salvador, Av. Grau and San Juan de Lurigancho.