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Peru awards $5.66 billion subway project

Staff writer |
A consortium led by European firms Finmeccanica and ACS won a contract for a $5.66 billion subway line in Lima after competitors dropped out of the contest last week, Peru's state investment agency said.

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Consorcio Nuevo Metro de Lima will build and maintain the mostly underground 35-kilometer (22-mile) line in a 35-year private-public concession, state investment agency Proinversion said. The government will put about $3.8 billion toward construction and maintenance of the project, with additional costs covered by the consortium, Proinversion said.

Ansaldo Breda and Ansaldo STS, both owned by Italian state-controlled industrial group Finmeccanica, together have a 27 percent stake in the project, said Italian construction company Salini Impregilo which is also part of Consorcio Nuevo Metro de Lima.

Spanish builder Iridium, owned by ACS, controls 25 percent of the group, which also includes Spain's FCC and Peru's Cosapi, Impregilo said.

Two other consortiums, including one formed by Brazilian construction giant Odebrecht and Peru's biggest builder Grana y Montero, failed to submit bids last week as expected, sparking concerns that the auction might be flawed.

Proinversion said those groups pulled out after the government refused to raise the project's $6.62 billion cost ceiling.

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