Peru's Economy and Finance Ministry and Germany's KfW Development Bank today entered into a loan agreement worth US$200 million.
Said credit will assist in financing part of Lima Metro's Line 2 and Faucett–Gambetta Branch, thus benefitting Lima and Callao districts' citizens.
Repayment term is 15 years —including a 3-year grace period— and shall be paid in semiannual installments.
The agreement also stipulates an annual 0.25% commitment fee, charged on the undisbursed amount of the loan, as well as a 0.50% administration-fee charged on the principal amount.
Project execution
The project will be executed by the Transport and Communications Ministry, which has ratified completion by 2021.
Lima Metro's Line 2 will provide Lima's high-density and peripheral areas with fast massive transportation, converging with other ample-coverage transport means while preserving the environment.
Likewise, it is among the country's highest-cost flagship projects developed over the last decades under concession.
The credit ratifies German KfW's major support to President Kuczynski's administration by allocating resources for public infrastructure development.
Such assistance will contribute to enhancing Lima's massive transport, leading to major favorable impacts on the country's economic development.
Corresponding document was signed by Economy and Finance Minister Alfredo Thorne and KfW Peru Office Director Christian Garve.
The event also saw the presence of German Ambassador to Peru Jörg Ranau.
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