USD 150 million to finance Line 2 of the Lima and Callao Metro
CAF, Development Bank of Latin America, approved a loan that will enable the improvement of the transportation conditions and quality of life of the inhabitants of 13 districts of the Peruvian capital
CAF, Development Bank of Latin America, approved a loan for USD 150 million in favor of the Republic of Peru to partially finance the construction of Line 2 and Av. Faucett - Av. Gambetta branch of the basic network of the Lima and Callao Metro.
The project will be executed in a Public Private Association scheme (PPA), under the co-financed concession modality for a period of 35 years, which includes the construction period. The implementation of the work, in charge of the Ministry of Transportation and Communications (MTC, for its acronym in Spanish) through the Autonomous Authority of the Electric Mass Transportation System of Lima and Callao (AATE, for its acronym in Spanish), seeks to consolidate a mass transportation system that is inexpensive, safe, and non-contaminating, and that enables the improvement of transportation conditions for the people who live in the East-West Road Axis, which includes 13 districts of the Peruvian capital.
Enrique Garcia, CAF's Executive President, stated, "This approval complements the support that CAF has given Peru in search for solutions for urban mobility, first with the construction of Line 1 of the Metro, and now with the execution of Line 2 of the Lima and Callao Metro. This is a high technology, non-contaminating transportation system which will contribute to improve the quality of life of the city's inhabitants".
This project is part of the comprehensive plan for the modernization of the Metropolitan Lima urban transportation system, and consists of the implementation of an underground metro line in the city's East-West Axis. It is 35 kilometers long, and it has 35 stations that include Line 2, and the Av. Faucett- Av. Gambetta branch (Line 4) of the Basic Network of the Lima and Callao Metro.
Line 2 will interconnect with Line 1, the Segregated Corridor of the Metropolitano, and the future Line 3. This is CAF's third loan to finance the Lima and Callao Metro. Previously, it granted two loans for USD 300 million each to finance Tranches I and II of Line 1.
The Peruvian Government established the Basic Network of the Lima and Callao Metro, made up by six referential lines which include Lines 2 and 4 that connect the East (ATE) and West (Callao) in the Lima and Callao metropolitan region.
CAF's actions in the transportation sector are aimed at supporting shareholder countries in their efforts to build and maintain a sustainable infrastructure, which is efficient and updated, as a basic condition to achieve the proposed economic competitiveness and social inclusion goals.
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