A USD4.2 million grant to lay the groundwork for a new railway corridor to strengthen connectivity along South America’s Pacific coast was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during its virtual meeting administered from Beijing on 26 March. The project will be implemented by the Development Bank of Latin America and the Caribbean (CAF).
The MCDF grant will support preparatory activities for a rail line between the Peruvian cities of Barranca and Trujillo, one of eight main segments of the planned Coastal Railway Corridor. The nearly 2,500km railway corridor will extend from Tacna in southern Peru to Tumbes in the north of the country, improving border linkages with Chile and Ecuador.
By 2030, the Coastal Railway Corridor is projected to serve 30 million passengers and 60 million tons of freight annually. Additionally, the Barranca-Trujillo segment is expected to ease adjacent, carbon-intensive road congestion and connect with local ports and airports.
The construction of around 80km of tunnels and 40km of bridges within the segment will allow for more seamless connectivity across the area’s mountainous and barren terrain.
The MCDF-supported project aims to facilitate the upstream development of the Barranca-Trujillo segment in line with International Financial Institution standards required for financing by CAF and others. It is also key to ensuring the segment sustainably boosts regional connectivity and economic integration.
The MCDF grant will fund a pre-feasibility study and a final feasibility study (pre-investment study) for the segment, covering technical, financial, operational, and environmental and social safeguards.
The studies are intended to help the Government of Peru and CAF determine the project’s feasibility, profile, and final investment and financing plans needed to move toward high-quality and sustainable delivery.
Contact
David Hendrickson
Senior Communications Officer
Mobile: +86 185 0114 6758
david.hendrickson@themcdf.org
