Peru's government has requested a US$300mn loan from Latin American development bank CAF to finance capital Lima's Tren Electrico light rail system, according to CAF representative Eleonora Silva.

 

The funds would be used for phase II of the system's line 1, Silva told state news agency Andina.

 

CAF is evaluating the proposal; however, technical studies must be completed before any financing is granted, Silva said.

 

The transport and communications ministry (MTC) expects studies for the system's line 2 to be completed in May 2011, according to minster Enrique Cornejo.

 

A tender for the project will be launched before the current government leaves office at end-July, Cornejo was reported as saying in a separate Andina report.

 

MTC will also begin the tender for phase II of the system's line 1, which includes the stretch from Grau avenue to San Juan de Lurigancho district, according to Cornejo.

 

Major construction on phase I is scheduled to be completed in mid-February, when tests will begin on the system's trains, which are currently being upgraded, the minster added.

 

The first phase of line 1 is being built by a consortium comprised of Brazil's Odebrecht and Peru's Graña y Montero at a cost of around US$410mn, BNamericas reported previously. CAF provided a US$300mn loan to fund the works.

 

Private investment promotion agency ProInversion is scheduled to award the concession to operate both lines of the light rail system in December, Cornejo added.

 

The 30-year concession includes building a train maintenance yard and purchasing rolling stock.