Earlier this year Peru's private investment agency Proinversión awarded the 35-year PPP concession to finance, build, operate, and maintain the line to Consorcio Nuevo Metro de Lima, a consortium of ACS Dragados and FCC, Spain, Salini Impreglio, Italy, AnsaldoBreda, Ansaldo STS and Cosapi, Peru. The consortium is providing $US 1.2bn in financing for the $US 5.8bn project.

The 27km east-west underground line will connect the district of Ate Vitarte with the city centre and Callao on the Pacific coast. The line is expected to carry 644,000 passengers per day with journey time of 45 minutes between Ate Vitarte and Callao.

The PPP contract includes construction of an 8km branch to Jorge Chavez International Airport, which will eventually form part of Line 4, as well as 35 stations, a depot, electrification, signalling and telecoms systems, and the supply of rolling stock, which is expected to cost around $US 871m.

The PPP funding structure is based on income from investments and certificates of progress issued by the Peruvian Ministry of Transport and Communications. When the line begins operating in 2020 the concessionaire will be funded by fare revenues.

The IDB's package for the project comprises a $US 300m loan to the ministry and non-sovereign loans to the consortium of up to $US 400m and $US 50m respectively from the bank's ordinary capital and the China Co-financing Fund for Latin America and the Caribbean, which is administered by the IDB.