Graña y Montero Announces Signing of Contract Addendum for Line 1 of Lima Metro
12 Juli 2016 - 3:47AM
Business Wire
Graña y Montero S.A.A. (NYSE: GRAM) (BVL: GRAMONC1) (“the
Company” or “Graña y Montero”) a leading Engineering and
Construction company, announced today that the Ministry of
Transport and Communications, and its subsidiary GyM Ferrovias
signed an addendum to the Concession Contract which will improve
the system capacity with the acquisition of trains, railcars and
complementary works for an amount of US$ 410 million (the total
amount is US$ 505,478,106.63 including general tax sales,
supervision, etc.).
This extension to the initial contract was subscribed by the
Deputy Minister of Transportation, Henrry Zaira, the Chairman of
the GyM Ferrovias Concessionaire, Gonzalo Ferraro, and the CEO of
Line 1, Manuel Wu, in a ceremony that was presided over by the
Minister of Transport and Communications, José Gallardo Ku.
Minister Gallardo highlighted that with this addendum, the
concessionaire will be able to acquire a total of 20 trains and 39
railcars. Their fabrication, shipping to Perú, and operation should
take between 18 and 24 months.
Moreover, he explained that with the gradual entry of the new
trains, until completing the fleet, the frequency of each service
will be reduced to up to 3 minutes. The trains will have six cars
(one more than at present), so 48,000 passengers will be
transported per hour and 500,000 passengers will be transported per
day.
Meanwhile, Gonzalo Ferraro welcomed the government’s decision to
invest in expanding Line 1 Lima Metro’s service capacity, since it
has succeeded in transforming the city with a reliable, modern and
safe transport system which has improved the quality of life of
thousands of Peruvians who can now travel to their schools, work or
recreation sites in the shortest time possible.
According to the manufacturer’s schedule, the first two trains
will arrive by the end of 2017, whilst others will arrive at the
beginning of 2018. Therefore, the frequency of each passing train
could be reduced to 5 minutes.
During 2018, more units will continue to arrive, while the last
ones will arrive by the end of that same year. By that time, it
would be able to increase one railcar on each train and reduce the
frequency to 3 minutes in the so-called rush hour. During peak
hours, like weekends and when the number of passengers is reduced,
the frequency will decrease from the current 10 minutes to 6
minutes.
INFRASTRUCTURE
IMPROVEMENTS
- With the new fleet of trains, the
electrical system will be strengthened in Tranche 1 for
reliability.
- To improve accessibility for clients,
and in order to give greater fluidity to the service, the stations
La Cultura, Grau, Gamarra, Bayóvar and Villa El Salvador will be
expanded considering that currently, they are the busiest.
- For keeping the new trains, additional
garages will be built in the Bayovar workshop.
- To facilitate train maneuvers on the
road and restore service more quickly in case of a contingency, 8
double switch points will be incorporated.
- Seeking greater safety and reliability
in the entry and exit station, a second access to the train yard in
Villa el Salvador will be built.
- LINE 1 will work so that the impact on
customers, due to additional works, is minimized.
Currently LINE 1 of Lima Metro has a fleet 24 trains and
transports 320,000 customers per day.
About Graña y Montero S.A.A.
Founded in 1933, Graña y Montero is the only Peruvian
engineering and construction company listed on the Lima Stock
Exchange since 1997 and in the NYSE since 2013. The Company has
participated in the development of major engineering and
construction projects in Peru, including large-scale, complex
projects in the energy, mining, construction and real estate
sectors.
It currently has subsidiaries in Chile and Colombia, and has
been executing major projects in Panama, Bolivia, Jamaica and
Ecuador. By the end of 2015, the Group’s international revenues
amounted to approximately US$ 600 million.
With 83 years of operations, the Company has leveraged its
engineering and construction expertise into complementary lines of
business, such as the development, ownership, operation and
maintenance of infrastructure assets, real estate developments, and
the provision of technical services. The Company has significant
investments in infrastructure concessions, such as three toll roads
and Line 1 of the Lima Metro.
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version on businesswire.com: http://www.businesswire.com/news/home/20160711006461/en/
Graña y Montero S.A.A.Investor Relations:Samantha
Ratcliffe,
511-213-6573samantha.ratcliffe@gym.com.perelacion.inversionistas@gym.com.pehttp://investorrelations.granaymontero.com.pe/
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