Contrato de Concesión de los Ferrocarriles del Sur y Sur Oriente (Concession Agreement)

Contrato de Concesión de los Ferrocarriles del Sur y Sur Oriente (Spanish) - Concession agreement between Peruvian state and a private entity (Ferrocaril Transandino S.A. - FTSA) regarding the southern (Matarani/Mollendo to Cusco) and the southeastern (Cusco to Machu Pichu) railway lines. The term of the concession is 30 years (extendable). The conceding authority transfers the right to use fixed assets and rolling stock for passenger and freight services to the concessionaire. Main obligations of the concessionaire include the upgrading and rehabilitation of the railway infrastructure (including signaling and telecommunication systems), rehabilitation of rolling stock, and improvement of the operational performance. The concessionaire has the obligation to provide open access to other railway operators on a non-discriminatory basis and upon payment of a track access charge. Track access charges need to be approved by the regulator.