June 7, 2006
Italian companies sign contracts worth US$2.2bn for railway construction

(BNamericas.com) - "Italian companies Astaldi, Ghella and Impregilo have signed two railway construction contracts with Venezuela's state rail institute IAFE, according to a joint press release from the companies involved.

The contracts, together worth US$2.2bn, are for the construction of a 252km railroad between San Juan de los Morros and San Fernando de Apure, and a 201km railroad between Chaguaramas and Cabruta. Both railroads will run primarily through the Guarico province in the country's north-central region.

The companies signed the contract as a joint partnership, of which each company owns 33.3%. The companies are already working in partnership to construct a railway between Puerto Cabello and La Encrucijada.

The contract also included options worth a total of US$1bn for the installation of the railway system, including signals, controls and rolling stock.

The construction of the two new railways is expected to take 72 months. The railways will require 15km of tunnels, 12km of bridges and viaducts, and 13 stations.

The railways are intended to promote growth in central-southern Venezuela by linking the region to the country's urban core".