Living in Peru : your everyday companion

(LIP-ir) -- It was reported yesterday that Andean Railways Corp. could begin to operate the Machu Picchu line in Peru by next year.

The corporation could be working in Machu Picchu as early as January 2008, provided that Peru's Ministry of Transport and Communication (MTC) and the Supervisory Authority for Investment in Public Transportation Infrastructure (OSITRAN) work out the contract Andean Railways is to sign.

María del Carmen Leiva, a representative for Andean Railways stated that the contract Trasandino is requiring them to sign has a couple of prohibitive points.

For instance, the railway company which is to begin working has to pay its expenses 3 months in advance, an amount equivalent to US$5 million. Another point states that the company has to pay a US$10 million insurance fee. Leiva has stated that this fee should be covered by Trasandino.

"Both clauses stipulated in the concession contract are impossible to pay because we are a small group that wants to invest. Besides, Trasandino can't say it has invested in improving or maintaining the railway because that was the States money," explained Leiva.

It was reported that once those issues had been solved between Peru's MTC and OSITRAN, the company could begin working in January. Andean Railways announced that it was to invest US$4.3 million in its first year in operation.