Ferrovias

active

Ferrovias signed a concession contract to operate the Belgrano North line of the Buenos Aires Metropolitan Railway on February 3, 1994, and took over operations on April 30, 1994. To prevent further deterioration of the Buenos Aires metropolitan railway network, the President had created a new state-owned corporation, FEMESA, in March 1990. It was soon prepared for privatization (via lease/concession contracts). FEMESA divided the network into 7 lines: Mitre, Sarmiento, Urquiza, Roca, San Martin, Belgrano North, and Belgrano South. The government called for bids under a 2-stage bidding process. Bids were decided on the basis of lowest subsidy required, and pre-awarded for all 7 lines in January 1993. Each concession contract is for 10 years with optional 10 year extensions. The Ferrovias consortium won the contract to operate the 58.4km Belgrano North line. Ferrovias comprises: Emepa; Seminara Constructores; TAC Cooperative; Pilar; Codi; Conipa; Conevial; Graglia, Picco and associates. At the time the concession was signed, Ferrovias was led by Leddevi Construcciones but the company was forced to withdraw due to domestic problems. The government pledged a US$196 million subsidy for the concession period, primarily for investment; Ferrovias will contribute an additional $82 million, besides paying a canon of US$ 166.1 million. In November 1999, the concession contract was extended to 2025; the government also approved an increase in the consumer fees of 129% in five years (the train fares should be firstly adjusted by June 2000). None None