GUATEMALA has secured financing of up to £5bn ($US 6.7bn) from the British government for its Metro Riel light rail project.
The 21km electrified line with 20 stops is planned to link Centra Sur in Villa Nueva with Centra Norte in Guatemala City along a largely segregated former national railway corridor. The project is designed to cut end-to-end journey times to around 40 minutes and carry up to 250,000 passengers a day.
The financing agreement was signed by state-owned Guatemala Railways (Fegua) and the British government in Guatemala City on July 9. The agreement is described as a financing ceiling rather than the actual project costs and both sides will now determine the project’s technical, financial and contractual structure, with key decisions expected in September.
Guatemala originally intended to deliver Metro Riel through a conventional public-private partnership (PPP), but after a decade of delays opted instead for a government-to-government (G2G) approach that allows it to draw on British technical expertise while facilitating financing through British export credit agency UK Export Finance (UKEF). British companies are expected to compete for contracts covering rolling stock, signalling, railway systems, civil works and project management.
British minister for exports Gareth Thomas describes the agreement as “the beginning of a long-term partnership that will deliver modern, sustainable transport infrastructure while creating opportunities for businesses in both countries.”
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