THE Peruvian government’s private investment promotion agency Proinversión is preparing to award next month the concession contract for the Tren Macho project to upgrade and operate the Huancayo - Huancavelica line.

Three bidders have prequalified for the 30-year concession contract, including the Ferrocarril HH consortium, a partnership between Sociedad Anónima de Obras y Servicios, the Peruvian subsidiary of Spanish civil works and tracklaying contractor Copasa, and Ferrocarril Wanka.

Also prequalified is the Consorcio Concesionaria Ferroviaria del Centro, comprising Construcción y Administración and Hidalgo e Hidalgo. Mota-Engil Peru is bidding in its own right.

The preferred bidder will provide the $US 394m required to upgrade the 128.7km Huancayo - Huancavelica line, one of the highest in the world with 38 tunnels, 15 viaducts and a summit at Huancavelica that is 3680m above sea level.

Work to upgrade the line will take five years. Photo Credit: Shutterstock/Abigail Rios

The design and construction phase of the contract runs for five years, after which the concessionaire will operate and maintain the line over a period of 25 years, supplying railway systems and rolling stock.

Work will include refurbishing the seven stations and 20 halts on the line, in order to serve a local population of 1.2 million. There will be six passenger trains in each direction a day, as well as one mixed train carrying both passengers and freight.

Proinversión says that the final draft of the concession contract has already been approved by the Ministry of Transport and Communications (MTC). Contract award awaits sign-off by the Ministry of Economy and Finance and Peru’s Comptroller General of the Republic.

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