CHILEAN State Railways (EFE) has signed a $US 700m long-term financing agreement with the Development Bank of Latin America and the Caribbean (CAF) and Spain’s government lending agency Instituto de Crédito Oficial (ICO) to support the modernisation and expansion of the national rail network.
Under the agreement, CAF will provide up to $US 500m, while ICO will contribute $US 200m, with the facility structured over 20 years and including a five-year grace period on principal repayments.
The financing forms part of EFE’s multi-year rail investment programme, which focuses on expanding commuter services, renewing fleets and infrastructure, and improving network resilience and sustainability.
EFE says the funding will be used to advance priority projects within its national investment plan, including major urban and regional initiatives. EFE president, Eric Martin, says the agreement “strengthens the financial sustainability of the company and provides certainty for the execution of strategic railway projects that are central to Chile’s development and connectivity.”
CAF says the agreement is one of its largest recent commitments to Chile’s transport sector. It says the loan will support line upgrade projects, expand passenger services in high-demand areas, and improve safety and operational efficiency across EFE’s network.
The agreement received the necessary authorisation from Chile’s economic and fiscal authorities, and EFE confirmed that disbursements will be aligned with the delivery of associated projects.
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