Peru's biggest bank, Banco de Credito del Peru (BCP), has approved a US$35mn loan to concessionaire CoviPeru, state news agency Andina reported.

 

The funds will be used to partially finance construction of the first phase of the Red Vial 6 highway.

 

CoviPeru will carry out the expansion of the Cerro Azul-Chincha Baja stretch, construction of underpasses and pedestrian bridges as well as operate and maintain the highway under a 30-year concession.

 

The first phase of the project will require investment of some US$72mn and work is scheduled to be completed by December.

 

CoviPeru, a subsidiary of Ecuador's Hidalgo & Hidalgo, was awarded the concession of the 222km Red Vial 6 stretch of the Panamericana Sur highway in September 2005.