Railway, Highway and Cable Car

Projects
August 2018

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 August 23nd, 2018

Railway, Highway and Cable Car Projects

MrZhendong Tao
Blue Global

We appreciate the opportunity to present a summary of Railway, Highway and Cable Car Projects available in Peru, in
order to provide you with the information necessary to evaluate which ones could be of your interest. Ernst & Young
Asesores Empresariales S.C.R.L. (hereinafter “EY Peru") and INVERTIR Consultores Asociados (hereinafter “INVERTIR")
would be glad to provide integral advisory services in the financial modelling and bidding processes of these projects.

We remain at your disposal to clarify and deepen what the content of this document deemed necessary.

Sincerely,

Pedro Arizmendi Daniel Cordova

Partner President

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What is a Public-Private Partnership (PPP)?
Infrastructure investment mechanism
A PPP is a partnership between the
PPP government and a private entity
where the latter incorporates its
experience, knowledge, equipment,
and technology, and risks and
resources are distributed among
the parties, preferably towards the
private sector, in order to create,
develop, improve, operate or
maintain public infrastructure and
provide public services.
Public-Private Partnerships can be developed
through a Private Initiative or a Public
Initiative.
Page 3 Private and Confidential Document
PPP are classified as: Self-financed and Co-financed
01 Self-financed PPP
Are those that do not require a contribution from the State and are financed
through the fees paid by users (tolls or similar modalities of investment
recovery), not requiring the use of public resources to carry out the project.
They require less approvals (less time) to be developed. Regarding the Private
Initiatives proposals, they do not need to be presented within an specific time
frame stablished by the Government.
Example: Toll roads.
02 Co-financed PPP
Are those that require public resources to financed the
project’s costs (CAPEX and OPEX, among others), or
require public guarantees for the private financing. They
require more approvals, since there are public resources
involved. Regarding the Private Initiatives proposals,
they have to be presented within the specific time frame
stablished by the Government.
Example: Water and Sanitation, Rail transport,
Hospitals, among others.
Project description
Lima – Ica Suburban Train

Lima - Ica Suburban Train

► President Vizcarra expressed his interest in the

construction of the Lima - Ica Suburban Train during the
last July 28 th speech.

► In the coming weeks, the Ministry of Transport and

Communications (MTC) will open a “period” for the
presentation of Co-financed Private Initiatives.
Lima
► Those investors/constructors interested can submit their
proposals for this project.

► Length of the project: about 324 Kms.

► Estimated investment: PEN 10,250 millions.

► Contract period (preliminary): 30 years.

► Max speed for travelers 200 km/h, and for freight 120 Ica
km/h.

► The technical characteristics are subject to discussion.

Those interested can propose the most suitable
technology.

Lima – Ica Suburban Train

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Project description
Trujillo – Chiclayo Suburban Train

Trujillo - Chiclayo Suburban Train

► President Vizcarra expressed his interest in the

construction of the Trujillo - Chiclayo Suburban Train
during the last July 28th speech.

► In the coming weeks, the Ministry of Transport and

Communications (MTC) will open a “period” for the
presentation of Co-financed Private Initiatives. Chiclayo
► Those interested can submit their proposals for this
project.

► Length of the project: about 210 Kms.

► Estimated investment: PEN 7,420 millions.

► Contract period (preliminary): 30 years.

► Max speed for travelers 200 km/h, and for freight 120 Trujillo
km/h.

► The technical characteristics are subject to discussion.

Those interested can propose the most suitable
technology.

Trujillo – Chiclayo Suburban Train

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Project description
Lima – Huancayo Suburban Train

Lima - Huancayo Suburban Train

► The development of this train aims to decongest the Lima´s Central Highway and offer a transportation alternative for
passengers and freight users of the latter Highway and the current Train to the city of Huancayo.

► This project can be presented as a Private Initiative.

► Length of the project: aprox. 310 Kms.

Lima
Huancayo

Lima – Huancayo Suburban Train

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Project description
Peripheral Ring Road
Lima – Callao Peripheral Ring Road
► It involves the design,
construction, operation and
maintenance of a highway that
passes through 1 1 districts of
Lima and Callao. The Project
starts in Elmer Faucett Avenue
(Callao) and finishes in
Circunvalacion Avenue (Lima).
The MTC is the entity in charge
► ►
of the project.
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► Type ofproject: Co-Financed
Private Initiative.
► Length of project: 33.2 Kms.
► Estimated investment: US$ 2.01
billions.
Contract period: 30 years.
Peripheral Ring Road – Lima/Callao
Private and Confidential Document
► Project benefits:
• Improve connections between
northern districts and the rest of
the metropolitan area.
• Reduce traffic congestion by
performing a new highway for
vehicles.
• New temporary jobs during the
construction period.
Project description
Reconstruction of northern roads

Reconstruction of northern roads

Tumbes
► Ministry of Transport and Communications (MTC) will
invest PEN 1.5 billions in the reconstruction of roads and
bridges in the north of Peru.

► Also, MTC will pay PEN 4.41 billions for 80 national roads
and PEN 742 millions for 149 local roads.

► Bidding documents will be available at the end of August. Piura

Lambayeque
► There are 2,630 Kms of roads affected by “El Niño”, a
climate phenomenon that causes floods the affect the
coastal cities of the North of Peru, and only 105 Kms have
been recovered.

► MTC is working in the legal framework to accelerate the

reconstruction.

Reconstruction of northern roads

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Project description
North Lima CableCar

North Lima Cable Car

► The project considers the construction and operation of a

cable car that will connect the districts of San Juan de
Lurigancho and Independencia, and interconnect them
with massive transportation systems such as El
Metropolitano (Naranjal Station) and the Metro of Lima
(San Carlos Station).
Naranjal
► The cable car will have five stations and will consider Station
complementary works

► Length of the project: about 6 Kms. San Carlos

Station
► Estimated investment: PEN 161 millions.

► Travel time: 25 minutes

North Lima Cable Car

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