IDB Invest, part of Inter-American Development Bank (IDB) Group, has approved a USD 500 million funding for the modernisation of Uruguay’s Central Railway line. The project envisages the construction, rehabilitation and maintenance of 273 km of rail lines between the cities of Montevideo and Paso de Los Toros, including the construction of 40 overpasses and underpasses.
The financial package approved by IDB Invest has a term of up to 17 years and consists of a senior loan of up to USD 440 million and a subordinated loan of up to USD 60 million, financed by IDB Invest and a group of commercial banks and international investors.
The project will be performed through PPP, under a contract between the Ministry of Transport and Public Works of Uruguay and Grupo Vía Central S.A, a special purpose company created with this purpose.
At the end of 2017, the Public Works and Transport Ministry published the bidding documents for this project estimated at USD 800 million. The concession period is 22 years.
After works will be completed, the line will allow trains to run at speeds of 80 km/h, with 22.5 t axle load.
The implementation of the Central Railway line project is part of the infrastructure plan of country’s government, which includes PPP initiatives in transport and education. The government’s objective is to consolidate the promotion of the freight railway transport.