Washington, D.C., July 22, 2002—The
International Finance Corporation (IFC), the private sector development
arm of the World Bank Group, will invest US$9 million in Ferrocarril Transandino
S.A. (FTA) in Peru, to support the modernization of the country’s railway
In 1999, the government of Peru privatized the state-owned railway company
Empresa Nacional de Ferrocarriles S.A. Under a thirty-year concession
agreement, the fixed assets and rolling stock of the southern line that
runs 689 km from Matarani to Cusco and of the southeastern line that runs
111 km from Cusco to Machu Picchu, were transferred to the new private
company Ferrocarril Transandino SA (FTA).
Declan Duff, IFC’s Director of the Infrastructure Department, said: “Privatization
of this system has a major double impact. Not only is the company providing
safe and efficient rail transport over steep grades to Machu Picchu, one
of the most precious tourist sites in the world. It is also bringing down
costs for exporters of minerals and agricultural products and greatly improving
Peru’s competitiveness. We are proud to be supporting it.”
FTA is owned by Sea Containers Ltd and Peruval Corp. S.A. and manages the
infrastructure of the Southern and Southeastern railway networks in Peru.
Orient-Express Hotels Ltd (a majority owned subsidiary of Sea Containers
Ltd) and Peruval Corp. S.A. also own and manage Perurail S.A. the railway
operating company for both lines.
IFC’s mission (www.ifc.org) is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people’s
lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, and provides
technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $31 billion of
its own funds and arranged $20 billion in syndications for 2,636 companies
in 140 developing countries. IFC’s committed portfolio at the end
of FY01 was $14.3 billion.