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2.1.1.1 Metro,

Key information Operational network length 34km (at-grade and elevated) Operational lines 1 Operational stations 26 (20 elevated,6 at-grade) Ridership 107.22 million passengers in 2016 24 trains (as of October 2017); Alstom is supplying 20 six-car train sets Rolling stock and 19 cars by 2019 for capacity expansion Fare system AFC system based on contactless stored-value smartcards Track and Power 1,435 mm; overhead catenary (1.5 kV DC) Technology ATP and ATO Commencement of operations January 2012* Lines 2 and 4 (branch line) spanning 34.5 km and covering 35 stations are under construction and scheduled to be completed in 2021; Lines 3 Opportunities and (remaining section) are in planning and scheduled to be completed by 2025 and contracts for these are to be awarded in 2018

Note: *Commencement of revenue operations; AFC – automated fare collection; ATO – automatic train operation; ATP – automatic train protection

Background: Lima is the capital and largest of Peru. It has a population of 9.32 million (January 2018). It is the industrial and financial centre of the country, accounting for more than two-thirds of the total industrial production. The city will host the 2019 .

The Lima metropolitan includes the city and the seaport of . It is the most populous in Peru, and the third most populous in America (after and City). It has a population of over 11.18 million (2017). The system, commonly referred to as Tren Eléctrico, is the only operational urban rail system in Peru.

Key players: Autonomous Authority of the Massive Transport Electric System of Lima and Callao/ Autoridad Autónomadel Sistema Eléctrico de Transporte Masivo de Lima y Callao (AATE) is responsible for the planning, execution and administration of the Lima Metro.

Protransporte is the metropolitan transport authority of Lima.

ProInversion is the state agency for the promotion of private investment.

TrenLima consortium secured a 30-year concession for the operations and maintenance of Line 1 in 2011. The consortium comprises Peru-based Grañay Montero S.A. (75 per cent stake) and - based Ferrovias SA (25 per cent stake).

Ositran, the transport regulator of Peru, is responsible for managing, regulating and overseeing activities related to public transportation infrastructure. Key contractors: In 2010, TrenEléctrico Lima consortium secured the USD410.2-million contract to construct Line 1.The consortium comprises Graña y Montero and -based Odebrecht.

Operational network: The system comprises one line, Line 1, which spans 34 km from to Bayóvar, covering 26 stations (20 elevated and six at-grade).

Construction began in 1986 and passenger services commenced on 9.2-km section, covering seven stations in 1990. However, the line was incomplete and did not reach areas of higher demand and density. The construction of the Lima Metro remained paralysed until 2009.

Line 1 was officially inaugurated in July 2011 but revenue services on the line commenced in January 2012. The latest extension opened in July 2014.

The line covers 11 districts and has an end-to-end journey time of 53 minutes.

Ridership: In 2016, the annual ridership on Line 1 was 107.22 million passengers.

Figure 2.2.8.1.1 represents the annual ridership trend on the metro from the year of commencement of operations up to 2016.

Figure 2.1.1.1.1: Annual ridership trend (2012-2016)

120 60 107.07 107.22 48.46 100 50

80 71.27 33.44 40

60 30 36.73 40 32.92 20

20 10 10.37 0.14 0 0 2012 2013 2014 2015 2016

No. of passengers (in million) Growth rate (%)

Source: Ositran Performance Report 2016

The ridership recorded a compound annual growth rate (CAGR) of 26.64 per cent and an overall growth rate of 226 per cent between 2012 and 2016. The projected figures for 2025 ridership have already been achieved.

Rolling stock and technology: As of October 2017, 24 trains are deployed. These comprise five six-car trains (purchased in the 1980s) and 19 five-car trains (supplied by -based Alstom in 2013).

The maximum speed of the trains is 80 km/hr and the commercial speed is 40 km/hr.

Table 2.2.8.1.1 provides the rolling stock details. Table 2.1.1.1.1: Rolling stock details

No. of Cars per Supplier Model Year of delivery trains train Ansaldo Breda (now Hitachi rail) MB-300 5 6 1989-1994 9000 19 5 2012-2013

Source: AATE annual report 2016, Global Mass Transit Research

In August 2017, the consortium of -based companies Ferrocarrils de la Generalitat de Catalunya (FGC) and Ardanuy secured the EUR2.1-million contract to supervise infrastructure and rolling stock maintenance on Line 1. The duration of the contract is two years. FGC will also provide a report to infrastructure manager Ospitran on possible improvements.

Canada-based Bombardier supplied the Cityflo350 signalling system, which provides on-board automatic train protection (ATP) and automatic driving through an automatic train operation (ATO) with the ATP information and ATO status displayed in the driver's cab. The has installed interlockings, track circuits and control equipment.

Tracks are standard gauge (1,435 mm). Power is sourced from overhead catenary (1.5 kV DC).

Germany-based Siemens provided the electrification system including the double catenary lines; a 2.6-km-long overhead contact line for the depot; a feeder station (60kV/20kV) with two 20 MVA transformers; two 20 kV cable distribution system rings; 10 station supplies and four 1.5 kV rectifier substations; a supervisory control and data acquisition (SCADA) system for traction power supply control; and a fare management system.

In October 2011, OTN Systems secured the contract to install the OTN-X3M communication system with a transport capacity of 10 Gbit/s and carrier grade ethernet features to support fibre-optic telecommunications of the metro line.

Fare system: Siemens has provided an automated fare collection (AFC) system based on contactless stored-value smartcards called Tarjeta. The card can be registered for balance protection as well as access to contests and sweepstakes.

The smartcards uses near field communication (NFC) technology. They can be purchased and recharged at all stations.

Extensions/Capital projects: In 2010, the Ministry of Transport and Communications (MTC) approved a basic network plan for the of Lima and Callao.

Figure 2.2.8.1.2 represents the planned network, which includes six lines. Figure 2.1.1.1.2: Planned network

Source: AATE

Table 2.2.8.1.2 represents the capital projects under way.

Table 2.1.1.1.2: Capital projects under way

Line Project description Status Acquisition of 20 five-car trains and 39 carriages Under implementation and Line 1 capacity as well as upgrade of five stations, electrical scheduled to be completed in expansion system and railway line signage 2019 and Line 4 Construction of new metro lines covering 34.5 Under construction (branch of Line 2) km and 35 stations Construction of a new 38.6-km metro line Under planning covering 29 stations Expansion of upcoming metro Line 4, covering Line 4 Under planning 31.1* km and 19 stations

Note: *Includes a 7.65-km section developed with Line 2 Source: Global Mass Transit

Line 1 capacity expansion: The new railcars will be used to lengthen the existing train sets on Line 1 from five-car to six-car configuration. This will increase the current transportation capacity from 320,000 passengers per hour to 500,000 passengers per hour, as well as reduce the headway of trains during peak hours from six minutes to three minutes. The trains feature large doors, low floors, extra wide seats and gangways between coaches, dynamic information displays and an interior design favouring natural light. The first train was deployed in November 2017 and 44 six-car trains are planned to be deployed by 2019.

The project is expected to cost USD410 million. Mizuho Bank and Sumitomo Mitsui Banking Corporation awarded a USD316-million loan to TrenLima consortium in September 2017.

Table 2.2.8.1.3 indicates the contracts awarded for the Line 1 extension.

Table 2.1.1.1.3: Contracts awarded for Line 1 extension

Contract Date of contract Contractor Scope of work value award Supply 20 six-car train sets and 19 cars by Alstom EUR200million July 2016 2019 Supply complete traction power supply for Siemens Not available January 2017 the 9-km-long first section of Line 1 Transports Metropolitans de Supervise the Line 1 capacity expansion USD6.8 million May 2017 Barcelona (TMB)and project Ayesa

Source: Global Mass Transit Research

Line 2 and Line 4 (branch): This is the largest public-private partnership (PPP) project in terms of investment. Lines 2 and 4 will be the first underground and fully automatic rail lines in Peru. The project is expected to be completed by 2021. The lines will be fully underground and connect 10 districts (Ate, Santa Anita, Agustino, San Luis, La Victoria, Cercado, Breña, Bellavista, Carmen de la Legua and El Callao). The service frequency is 1.5 minutes. Table 2.2.8.1.4 provides the project details.

Table 2.1.1.1.4: Details of Line 2 and Line 4 (branch)

End-to-end journey time Line Route Length (km) Station (minutes) Line 2 Ate Vitarte to Callao 26.87 27 45 Gambetta to Carmen de la Line 4 7.65 8 13 Legua TOTAL - 34.52 35* -

Note: *Includes one common station, counted twice Source: Ositran Business Plan

Line 2 will have connections with Lines 1, 3, 4 and 6. It will be developed in four stages as indicated in Table 2.2.8.1.5.

Table 2.1.1.1.5: Construction stages of Lines 2 and 4

Stage Route No. of Scope of work stations Tunnel excavation by conventional methods Stage 1A No route or station construction in this stage (NATM method); six ventilation wells and a courtyard workshop at Santa Anita Plaza Bolognesi to Municipalidad Construction of 15 stations on Line 2 and 10 Stage 1B 15 de Ate ventilation wells Construction of 11 stations on Line 2 and 11 Stage 2-L2 Puerto del Callao to Parque Murillo 11 ventilation wells Construction of 8 stations on Line 4, 7 Stage 2-L4 Gambetta to Carmen de la Legua 8 ventilation wells and a courtyard workshop at Bocanegra

Source: Ositran Business Plan

Table 2.2.8.1.6 provides details of the key contractors.

Table 2.1.1.1.6: Key contractor details

Contractor Scope of work Nuevo Metro de Lima consortium including Peru-based Cosapi (10%); - based Salini Impregilo Group (19%), 35-year concession; 5-year term for design, construction and Ansaldo STS (15%) and AnsaldoBreda financing as well as a subsequent 30-year term for operation and (12%); Spain-based FCC (19%) and ACS maintenance Group subsidiaries Dragados and Iridium (25%)

Metro de Advisor for the project Supply of electromechanical systems for signalling, power supply, telecommunications, , equipment Ansaldo STS* depots, control centres, and supervisory control and data acquisition (SCADA) system. The company will also participate in O&M and supply an automated fare collection (AFC) system. Supply of 42 six-car trains with a length of 108 metres and width of 2.85 metres; capacity of 166 seated and 1,105 standing AnsaldoBreda (now Hitachi Rail Italy)* passengers; maximum speed of 90 km/hr; high levels of security and comfort; air-conditioning; and public address system. The first train was delivered in September 2016. Installation of six 60 kV/20 kV feeder stations, two 20 kV cable Siemens* distribution rings, 37 station supplies, 21 rectifier substations (1.5 kV DC) and SCADA

Notes: *These contracts are part of the Nuevo Metro de Lima consortium concession Source: Ansaldo STS, Hitachi Rail and Siemens

Tracks will be standard gauge (1,435 mm). Power will be sourced from overhead catenary (1.5 kV DC).

Funding: The total estimated cost of Line 2 is USD5.84 billion. Table 2.2.8.1.7 provides funding details. Table 2.1.1.1.7: Funding sources for Line 2

Financier Commitment (USD million) Andean Development Corporation 150 Inter-American Development Bank 300 International Bank For Reconstruction And Development 300 Foreign private commercial sources (unidentified) 2,801 Borrower 2,285 Total 5,836 Source:

In June 2015, the Nuevo Metro de Lima consortium raised USD1.15 billion for Line 2 from bonds sold in the international markets. The bonds will reach maturity in 19 years and charge 5.88 per cent interest per year.

In September 2015, the World Bank (Inter-American Development Bank) approved a loan of USD300 million for Line 2. The loan will be disbursed over a period of six years and has a maturity period of 15 years, with a grace period of six years.

Line 3 and Line 4: The lines will be fully underground and are in the planning stage.

In July 2017, the announced plans to award contracts worth USD11 billion for Lines 3 and 4 in 2018. Construction is expected to begin in 2019 and be completed by 2025.

Table 2.2.8.1.8 provides details of Lines 3 and 4.

Table 2.1.1.1.8: Details of Lines 3 and 4

Length No. of Cost (USD Contractor for pre- Line Districts covered (km) stations billion) investment study Consortium led by , PricewaterhouseCoopers Miraflores, San Isidro, Lince, and including France- Jesus Maria, Cercado de Lima, Line 3 38.6 29 6.6 based Ingerop, Italy- Rimac, San , based Metropolitana Independence, Los Olivos and Milanese and Peru-based Comas Alpha Consult Ate, La Molina, Surco, San L4L consortium, Borja, San Luis, San Isidro, comprising Geocontrol, Lince, Magdalena del Mar, Line 4 31.1* 19 4.2 Kapak, Logit, Jesús María, San Miguel, Euroestudios, Qursor and Carmen de la Legua and Tec-Cuatro Cercado del Callao Note: * The line includes a 7.6-km branch line, which is currently under construction. Source: Proinversion

Recent developments: In February 2018, Alstom supplied the fifth train under the contract to supply 20 six-car train sets and 19 cars by 2019.

In November 2017, Alstom deployed the first six-car train on Line 1.

(1 EUR [Euro] = 1.21 USD) Project contacts:

 Carlos Alberto Ugaz Montero, Executive Director, AATE (email: [email protected]; telephone: +51 224 2444, extension: 100)  Ronny Sotomayor Morales, Manager of Operations Management, AATE (email: [email protected]; telephone: +51 224 2444, extension: 120)  Svetlana Tarasova, Manager of Infrastructure Management, AATE (email: [email protected]; telephone: +51 224 2444, extension: 425)  Cesar Manuel Jimenez Espinoza, Manager of Development Management, AATE (email: [email protected]; telephone: +51 224 2444, extension: 130)  Alvaro Quijandría Fernández, Executive Director, ProInversion (email: [email protected]; telephone: +51 1 200 1200, extension: 1246)  Juan José Martinez Ortiz, Secretary General, ProInversion (email: [email protected]; telephone: +51 1 200 1200, extension: 1285)  Gustavo Ibarguen Chávarri, Director of the Investment Promotion Division, ProInversion (email: [email protected]; telephone: +51 1 200 1200, extension: 1263)  Rosa María Tejerina, Head of Projects, ProInversión  Bruno Giuffra Monteverde, Minister of Transport and Communications of Peru