EXECUTIVE SUMMARY RESUMEN EJECUEJECUTIVO

GEOPOLITICAL PROJECT PERU-BRAZIL BIOCEANIC RAILWAY INTEROCEANIC SALAVERRY-LEONCIO PRADO - BORDER PERU-BRAZIL (FERRIPEB)

GEOPOLITICAL PROJECT BIOCEANIC PERU-BRAZIL. RAILWAY INTEROCEANIC SALAVERRY LEONCIO PRADO PERU BORDER - BRAZIL (FERRIPEB)PROYECTO LEY N 29613 EXECUTIVE SUMMARY OBJECTIVES AND SCOPE OF INVESTMENT OBJECTIVES: 1. Articulate transcontinental rail road infrastructure standard gauge from harbor Salaverry until Milestone 78 of the Peru-Brazil border, connecting the railways of Brazil, which projecting toward the interior of Brazil Cruzeiro do Milestone Sul and 78, in order to implement an efficient flow Commercial transport, safe and intelligent comfortable, competitive, fast, ecological and economic, cargo and passengers. 2. Promote regional integration Coastal, Andean, Amazon and transcontinental, enabling Trade surplus production in the Domestic goods with Brazil and other countries continent and attracting trade with the countries of APEC and NAFTA signatories, new geostrategic has moved the economy and global trade, from both sides of the North Atlantic Basin to Pacific, facilitating it, with the output of the Grain production and other merchandise, mainly from Brazil through this axis national to the port of Salaverry in the Pacific, which will Repowered to become the largest port in the region. 3. Favor more than 4 million Peruvians creating nearly a million jobs needed in the implementation of this project and encouraged in the development poles formed in the shaft, the implementation of value chains and industrialization and in the area of influence, also allowing the orderly settlement of the border live in the regions of Loreto and Ucayali the country. 4.Facilitate public access to social benefits of civilization, such as health, education, access to basic services of electricity, water, sewer, 2

telephone, Internet, intranet, and promote the implementation of road infrastructure and productive areas of high agricultural potential, forestry, tourism and mining in order to eradicate hunger, extreme poverty and exclusion. SCOPE: Project considered of great importance for the Peruvian state as indicated by Law No. 29613; LAW PUBLIC NEED AND DECLARES NATIONAL INTEREST PROJECT PERU-BRAZIL GEOPOLITICAL BIOCEANIC RAIWAY INTEROCEANIC SALAVERRYLEONCIO PRADO-PERU-BRAZIL BORDER (FERRIPEB), considered of great importance for the development of the North and East Peruvian views expressed in the documents in the Transport Committee of the Congress of the Republic, of the regional presidents FREEDOM, SAN MARTIN LORETO, MOTHER OF GOD, Ucayali and institutions such as CAEN, MINISTRY OF DEFENCE, COMMAND SET, CANSILLERIA, MINISTRY OF TRANSPORT, OSITRAN IGN and others. For Brazil will be of great advantage to cut the time in transporting their produce to the markets of the Pacific (APEC) that is shortened significantly with this new route distances and consequently transport costs relative to traditional routes currently using. Fig.1 Eectric Locomotive

GOODS AND / OR ON PUBLIC SERVICES WHICH BUILD PROJECT The project runs through the regions of La Libertad, San Martin and Loreto, from the port of Salaverry, to 3

Milestone 78, Peru-Brazil border, on an area of approximately 1020 km. Through a rail infrastructure that will provide the service of freight and passengers on this route which is located in a privileged geographical position strategic integration Coastal, Andean, and Amazon with the Pacific Rim, with emerging economies in South America and with the industrialized economy of Asian countries, a situation that would transform the country favorably. The railway should be 1.435 mm, in width as the standard gauge which is used in Brazil.

METHODS AND CONTRACT TERM CONTRACT The contractual arrangement will be done as is specified in the Act 29613 and in relation to the grant, the items on the 7th of Law, says the 30-year concession period, after which the goods pass the award to part of the heritage of the state. REFERENCE AMOUNT OF INVESTMENT Total: U.S. $ 10.000 Million dollars Approximately. DETAIL: NAME COST U.S. $ MILLION Investment for the construction, US $ 8,500 operation and maintenance Investment for expansion of the US $1,500 port of Salaverry and ports Juanjui, Pillory and Contamana

Fig 2.

Puerto de Salaverry

CURRENT COST OF ROLLING STOCK AND ARTWORK INTERNATIONAL MARKET COST U.S. $ OBS U.S. $ 3'110, Chinese budget millions 540 km of U.S. $ 3.000 ' dem track, 18 million bridges and 120 tunnels 1 Mainline U.S. $ 16'005, dem millions 1 km. U.S. $ 534.682 Belgrano railway Electrification north-south 1 passenger car U.S. $ 2'178, 000 1st class, 2nd and / or U.S. $ class, 1st and 2nd 2'330, 000 class restaurant with a van, and costs automovileros oscillating bedroom cabin. (Chinese) Diesel $ 2 million U.S. NA locomotives (Prices are higher Electric in Europe) Freight cars 65.000 -EE.UU. de NA 75.000. -Brasil 90.000 -EE.UU. de NA 5 NAME 1 km. railroad

TENTATIVE SCHEDULE INVESTMENT PROCESS The expectation of freight and passengers Project is initially acquire 20 locomotives of 30 wagons and 6 cars (01 car Bar - Kitchen): SCHEDULE: NAME ESTUDIOS Y OBRAS PRINCIPALES DRAFT PROFILE PRE-FEASIBILITY STUDY RAILWAY CONSTRUCTION MATERIAL SUPPLY, INSTALLATION START Civil and electromechanical works ACQUISITION OF ELECTRIC LOCOMOTIVES AND ADAPTED TO GAS CARS 1st and 2nd class AND CABIN RESTAURANT WITH VANS, WAGONS LOADING AND AUTOMOVILEROS SIGNALLING WORKS COMMUNICATIONS SYSTEM FACILITIES AND EQUIPMENT REPAIR AND MAINTENANCE ADDITIONAL WORKS TIME EXECUTED 2 YEARS 5 YEARS IDEM IDEM 3RD YEARS 4RD YEARS 0BS U.S. $ 300.000 The allocation GRANT FROM EXPENSIVE SECTIONS 18 CONSIDERED IN EACH SECTION QUALITY

4RD YEARS 4RD YEARS 3ER AO 5

TECHNICAL TECHNICAL

WITHIN YEARS CONSTRUCTION AND SUB-STATIONS 9 WITHIN ESTASIONES YEARS PORT EXPANSION PORTS AND IDEM INTERMEDIATE SALAVERRY BY TECHNICAL RECORDS. BRIDGE-TUNNEL CONSTRUCTIONWORK-ART AND PIPELINES CONSTRUCTION AND PORT FACILITIES AND WAREHOUSE BUILDING AND EXPORT ZONES PROCEZAMIENTO SPA WORKS AND ADDITIONAL WORK OTHER EQUIPMENT AND PROVISION IDEM IDEM IDEM

5 IN CITIES APPROVAL AND EXECUTION OF TECHNICAL STUDIES AS TECHNICAL STUDIES

LAST YEAR 7

FOR TRAVEL LONG DISTANCES FOR STARTING TRAINING UNITS FORM OF REMUNERATION

LAST YEAR

SPECIALISTS

According to economic calculations, the investor recovers his capital invested in the first fifteen years thirty establishing the award. TRADE INSURED. States of Acre, Rondonia and Mato Grosso, grain producers are proportionally closer to Peru to the Atlantic Brazil. While the distance to the ports Peruvians as one, the Brazilian ports is about three. A ship that take this route to go to Peru Asia, save 10 days compared to one that goes to Atlantic before crossing the Panama Canal and only then begin its journey to the Far East. Following the above calculation and estimating that each day costs a million dollars, those 10 days unless they mean $ 10 million savings. SCOPE OF OPERATIONS: 1. Working with Brazil and Biocenica used road route: other neighboring countries

Loads of Brazil: (For wagons of 30 tons. Of capacity) Transport is considered perspective 15% approximately 80 million tons of grains and soybeans from Brazil, which exports to China, Japan and other APEC countries. Passengers: (100 passengers in cars) transporting Domestic and foreign passengers. 2. Return Operations: Load: The Coming of the APEC countries to Brazil Domestic goods (phosphates, steel, cement, metals, agricultural and agroindustrial production surplus. Passenger: passenger foreigners. transport and domestic tourists and

3. Other Operations and Services: You must also consider transportation services by pipelines, port customs clearance services, loading, unloading and storage at ports, etc. 8

TRADE: (TRANSPORT, LOADING AND STORAGE OF GOODS) ACTIVITIES FOREIGN TRADE IN THE PACIFIC APEC COUNTRIES (BUY BEANS AND SOYBEANS TO BRAZIL) will buy START PORT SALAVERRY IT IS MARKETED IN THE INDUSTRIALIZED PRODUCTION OF REGIONS WITH THE EXTERIOR FROM THE PACIFIC TRADE IN THE OBS TARGET 78 BRAZIL AND FREIGHT: SOUTH AGRICULTURE: AMERICAN 1 TM X $ 30 COUNTRIES TO THE PACIFIC THE THREE WOODS: REGIONS OF 1 M3 X $ 25 SHAFT CAN COMMERCIAL MARKET THEIR CARGO: PRODUCTS TO 1 TM X $ 45 BRAZIL

NATIONAL

TOURISM: CARS, 1ST, 2ND, RESTAURANT AND CABIN TYPE FOREIGN NATIONAL ORIGIN PACIFIC-ATLANTIC ATLANTIC-PACIFIC INSIDE and OUTSIDE PASSAGES INTERNATIONAL RATES IDEM NATIONAL RATE

RATES: AVERAGE FREIGHT TRANSPORT IN THE RAIL VEHICLES AND LOAD EQUIVALENT. RUTA
LIMA LA OROYA LA OROYA UNISH (PASCO) LA OROYA - HUANCAYO

KMS. 222 132 124

RATE (SOLES/TON)

EQUIVALENT RATE (SOLES/VEHICULO)

SP 23.38 13.31 12.50

CP 16.62 12.05 11.32

SP 671.45 399.24 375.05

CP 498.50 361.50 339.60

RATES: FOR THE CARRIAGE OF PASSENGERS (S/. / Person) ROAD (WITH AND WITHOUT PROJECT) RATES PRIVATE SOCIAL
LIMA OROYA LA LA OROYA - UNISH LA OROYA HUANCAYO BY RA IL (WITH DRAFT) TARFA UNICA

25.00 19.75

18.00 14.22

18.00 14.22

20.51 16.20 9

fuente: Ferrovas Central Andina S. A.

Fig. 3 REGION SAN MARTIN

LEONCIO PRADO CUENCA DEL PONAZA

UNIT LOCATION AND HOURS FOR ACCESS TO INFORMATION REFERENCE HAS BEEN MADE, THE INTERESTED SIGN A CONFIDENTIALITY AGREEMENT Offices of the "GEOPOLITICAL PROJECT BIOCEANIC PERUBRASIL.FERROVIA INTEROCEANIC SALAVERRY - BORDER Leoncio Prado PERU - BRAZIL (FERRIPEB) are located in the geographical area of the San Martin region. Leoncio Prado Headquarters: Jr. Patricio Huarcaya S/N Plaza Mayor de Leoncio Prado del Distrito de Tingo de Ponaza, Provincia de Picota. Telfonos: RPM *627919 CEL 942831963 CEL 942972278 HORARIO: De lun-Sab. de 08.00 a 20.0 hs.

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Tarapoto Headquarters: En la Calle San Martin No 1074 Provincia de Tarapoto Telfonos:042-524825 CEL 942972278 HORARIO: De lun-Sab. de 08.00 a 20.0 hs. Fig. 4 RIO PONAZA fig.5 CATARATA DE CHAMBIRA

PREQUALIFICATION REQUIREMENTS TO BE MET BY INTERESTED Law No. 29613, states that for prequalification Consortium (Project Geopolitical Bioceanico-Investor) requesting PROINVERSION Concession, this should have the investment capacity to bear the costs that demand technical studies of perfectibility, which will be qualified by PROINVERSION and once approved the studies, the agency shall proceed according to Legislative Decree 1012, which will be resolved by a process he described to investors, who must demonstrate the ability to have investment that is required to execute the construction of the work, operation and maintenance during the concession period specified for a period of thirty (30) years. APPLICATION FORM OF DECLARATION OF INTEREST ACCREDITATION REQUIREMENTS PREQUALIFICATION AND

Geopolitical Bioceanico Project Peru Brazil & Investor, in the form of consortium, will be responsible 11

for applying for the grant for feasibility studies and pre-and expensive later apply for the grant. Be timely filed by the consortium Bioceanico Geopolitical Project Investor and establish appropriate requirements for performing the studies run the construction work, operation and maintenance. ENVIRONMENTAL SITUATION. a.- Studies conducted by the Air Resources Board (California - CARB) in June 1990 Railways revealed that produce less than one percent of all air pollution. This is due to improvements in the technology locomotives, changes in rail operation and Significant improvements in fuel efficiency fuel. Were used in this project, locomotives transformed Gas and Electric, which are less polluting. The benefits against the fleet are older: 1) More traffic means less of these railways air pollution. 2) Increased carrying capacity without using more land 3) Less fuel per ton / km cargo. b.- On the route were made to heighten awareness,Samples being received support and general acceptance part of the population and local authorities and regional, as embodied in: 1) Summits (03); two in Leoncio Prado and (01) the province of Picota. (Attendance mass of about 10,000) Signature of (12) Agreements with Local Governments, with The participation of the people-Salaverry Agreement Otuzco- QuiruvilcaHuamachuco-Pillory-Leoncio PradoShambuyacuPampa Hermosa-Inahuaya - Orellana - Contamana Requena.

2)

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(FDO) MG. SIXTO ALEJANDRO MOREY TRIGOZO PRESIDENTE DEL PROYECTO GEOPOLITICO BIOCEANICO SALAVERRY, JUANJUI, PICOTA, CONTAMANA, CRUZEIRO DO SUL PERU-BRASIL REPRESENTANTE LEGAL E-mail : sixtoalejandromorey@yahoo.es

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