PERU's Private Investment Promotion Agency (ProInversión) has launched an international market sounding process for two railway public-private partnership (PPP) projects with an estimated combined investment of $US 5.37bn. The process seeks private sector participation to advance the technical, legal and financial studies needed before the concessions are tendered.

The investment estimates represent the anticipated value of the future PPP contracts covering the design, financing, construction, operation and maintenance of the two railways, rather than the cost of the current studies.

The larger project is the proposed Imata - Espinar - Cotabambas heavy-haul railway, a 520km freight line with an estimated investment of $US 4.34bn. Running through the regions of Arequipa, Cusco and Apurímac, the line is intended to provide high-capacity rail access for one of Peru's largest copper-producing regions, linking major mines around Espinar and Cotabambas to the existing Juliaca - Mataraní line at Imata while reducing heavy lorry movements and logistics costs.

The second scheme is the Chinchero - Cusco Railway, a 33km passenger line with an estimated cost of $US 1.03bn. The railway would connect Cusco to the city’s new Chinchero International Airport providing a dedicated public transport link for residents and tourists while relieving pressure on the congested road corridor serving the historic city.

ProInversión is inviting domestic and international companies to participate in developing the studies that will define the technical specifications, risk allocation and commercial structure of the future concessions under the agency's PPP 5.0 framework before formal procurement begins.

“These projects are intended to transform logistics and mobility in southern Peru while consolidating the country's railway development under the PPP 5.0 model,” says ProInversión’s executive president Luis Del Carpio.

The two projects form part of ProInversión's railway pipeline valued at more than $US 20bn, which also includes the Lima - Ica railway and Lima Metro expansion projects.

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