The Autoridad de Transporte Urbano para Lima y Callao (ATU) is moving forward with plans to develop Lines 3 and 4 of the Metro through the Association Public-Private (APP) model. While the agency has convened with international banks, companies and embassies to gauge interest, the formalization of these projects remains pending at the governmental level.
David Hernández, president of the ATU, confirmed that the technical analysis and the definition of these projects as APPs have already been communicated to the Ministry of Economy and Finance (MEF). The final step required to advance is the publication of a supreme decree by the MEF, which Hernández describes as a formal procedure following the established political decision to proceed with the APP model.
Strategic Planning and Financial Models
To prepare for the next phases, the ATU has already allocated budget resources to be transferred to ProInversión once the legal framework is finalized. The primary immediate goal is the hiring of a Project Management Office (PMO) to oversee the design and financial structuring of the lines. The ATU has already provided the necessary terms of reference for this process.
A key component of the financial strategy involves generating “non-tariff” income, or capital gains, to increase the profitability of the projects. This model proposes integrating metro stations with commercial and real estate developments, such as shopping centers and residential buildings. Given that these projects are estimated to cost approximately US$ 10,000 million, the agency aims to secure international development banking support to facilitate payment terms spanning 15, 20, or 30 years, rather than relying on annual state payments that could strain the national budget.
Did You Know? The proposed financial model for Lines 3 and 4 aims to move away from traditional APP payment structures by incorporating real estate and commercial development around stations, an approach designed to manage the estimated US$ 10,000 million investment over several decades.
Expert Insight: The transition to a long-term financing model reflects the fiscal reality of large-scale infrastructure in Lima. By seeking to index commercial development with transit hubs, the ATU is attempting to create a self-sustaining ecosystem that reduces the immediate burden on the state treasury, though success hinges on both legislative adjustments and the ability to attract long-term international capital.
Regulatory Adjustments and Ongoing Projects
The ATU is also working to reform its organic law (Ley N° 30900) to gain the authority to develop commercial projects linked to transport infrastructure. The agency is seeking modifications to the Law of Sustainable Urban Development (DUS). While the ATU hopes to reach a consensus for these changes within the new bicameral Congress, it maintains a “plan B” of coordinating directly with the Municipalidad Metropolitana de Lima (MML) to expedite land management and administrative processes if legislative changes are delayed.
Regarding existing infrastructure, the ATU reported that Line 2 is progressing steadily, with efforts focused on having the route operational up to the Bolognesi station by 2028. Meanwhile, the expansion of Line 1 is currently in the hands of the concessionaire, which must secure financing for the project following the technical and economic viability approval granted by ProInversión. The investment for this expansion is estimated at S/ 14,104.05 million, with a potential addendum signing slated for June.
Frequently Asked Questions
What is the status of the officialization of Lines 3 and 4?
The technical analysis has been submitted to the Ministry of Economy and Finance, but the supreme decree required to officially launch the projects as APPs is still pending.
How does the ATU plan to fund the US$ 10,000 million cost of the new lines?
The agency intends to use a financial model that includes non-tariff income from commercial and real estate projects and seeks international development banking to allow for payment terms of 15 to 30 years.
What is the timeline for Line 2?
The goal is to have the line operational up to the Bolognesi station by 2028, utilizing an approach that allows for the opening of the route in stages.
How might the integration of commercial real estate into public transport infrastructure change the daily experience of commuters in Lima?
