RAILWAYS

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The Railway Rehabilitation Project for Peru will assist in financing a three year program for the rehabilitation and modernization of the Central and Southern Railways of Peru. The Central and Southern Railways are the major common carriers in Peru. They connect the main areas of export production with the ports of egress and provide an economical means of transporting food and supplies to producers in the interior. In order to maintain their operation, the project will replace old and inadequate equipment and expand the railways to accommodate growing traffic demands. Its components are: 1) procurement of motive power (diesel-electric locomotives); 2) procurement of rolling stock (passenger and freight cars); 3) implementation of permanent way and works projects (laying of new track); 4) installation of signaling and telecommunications equipment; 5) construction of workshops along with the purchase of workshop equipment; 6) miscellaneous construction and procurement of equipment; and 7) contingencies and engineering. These improvements will modernize and expand the Central and Southern Railways of Peru in order to handle new traffic demands.