In connection with the passenger railway projects announced by the Ministry of Communications and Transportation (the “SCT”) under the 2013-2018 Transport and Communications Infrastructure Investments Program (the “Program”), below you will find information on the status of the relevant projects that mainly consist of: (i) the Mexico City-Toluca, (ii) the Mexico City-Queretaro, and (iii) the Trans-peninsular (Yucatán-Quintana Roo), as well as of other relevant projects such as the Light Railway Line for the city of Guadalajara.

A) Mexico City – Toluca Passenger High Speed Railway

1. Description

The project will have a total of six (6) stations and the proposed route will run between the Observatorio terminal in Mexico City and the Municipality of Zinacantepec. The intermediate stations will be Toluca, Metepec, Lerma and Santa Fe. Its length is approximately sixty (60) kms.
 
It will be the first high-speed railway to operate in Mexico and it might reach a speed of 200 km/hr. Its estimated cost is USD$2.6 billion dollars.
 
The SCT will launch different tenders for this project. Initially, the following three tenders are contemplated: (i) civil works, (ii) acquisition of rolling stock, and (iii) operation (initially, the operation will be awarded through a concession).

2. Coordination Agreement

The SCT published at the Official Gazette of the Federation (the "OGF")_on January 2, 2014 a Coordination Agreement (the "SCT/SoM Agreement") entered by SCT and the government of the State of Mexico (the "SoM") to promote the construction, operation, use and maintenance of this project.
 
The SCT/SoM Agreement sets forth respective obligations for each of the SCT and the SoM. However, both parties are compelled to: (i) promote and encourage the necessary actions, within their jurisdiction, for the development of the project, and (ii) finance the development of the project.

In particular, the SCT is obligated to:

  1. Retain the technical, legal and financial advisors to structure the most convenient legal and financial model for the project, as well as to prepare the tender documents and assist during the tender process, to finally award the respective concession title.
  2. Tender the concession title.

Meanwhile, the SoM is compelled to:

  1. Secure the required right of way (ROW) for the project.
  2. Assist the SCT in the SCT’s obligations set forth above.

3. Progress of the Project

Based on recent publications issued on February 12, 2014, the status of the project, in particular of  the various tender processes, is the following:

  • Civil works from Zinacantepec to the tunnel. Expected to be tendered in the first quarter of 2014 and be awarded in the second quarter of 2014.
  • Civil works regarding the Sierra de las Cruces tunnel. Expected to be tendered in the second quarter of 2014 and be awarded in the third quarter of 2014.
  • Observatorio civil works. To be tendered in the second quarter of 2014 and expected to be awarded in the third quarter of 2014.
  • Rolling stock. Expected to be tendered in the second quarter of 2014 and be awarded in the third quarter of 2014.

B) Mexico City – Queretaro Passenger High Speed Railway

1. Description

This project will connect Mexico City with the city of Querétaro, in the State of Queretaro. It will run from the Buenavista subway station in Mexico City and will have an approximate distance of 278 kilometers.
 
This train will depart from Mexico City and will cross the States of Mexico and Hidalgo to finally reach the city of Queretaro.
 
It might reach a speed of 300 km/hr and its estimated cost is USD$3.3 billion dollars.
 
The SCT will launch different tenders for this project. Initially, the following three tenders are contemplated: (i) civil works, (ii) acquisition of rolling stock, and (iii) operation (initially, the operation will be awarded through a concession).

2. Coordination Agreement

The SCT published at the OGF on February 18, 2013 a Coordination Agreement (the "SCT/SoQ Agreement") entered by SCT and the government of the State of Queretaro (the "SoQ") to promote the construction, operation, use and maintenance of this project.
 
The SCT/SoQ Agreement sets forth respective obligations for each of the SCT and the SoQ. In particular, the SCT is compelled to tender the concession title. On the other hand, the SoQ is compelled to:

  1. Secure the required right of way (ROW) for the project.
  2. Prepare the design for, as well as to construct and finance, the required urban and circulation streets/access to assist in the operation of the train.
  3. Contribute with other required infrastructure, as well as to restructure the public transport and its routes.

3. Progress of the Project

Based on recent publications issued on February 12, 2014, the status of the project, in particular of  the various tender processes, is the following:

  • Civil works. Expected to be tendered in the second quarter of 2014 and be awarded in the third quarter of 2014.
  • Rolling stock. Expected to be tendered in the second quarter of 2014 and be awarded in the third quarter of 2014.

C) Trans-peninsular (Yucatán-Quintana Roo) Passenger High Speed Railway

1. Description

This project will be developed in the states of Yucatan and Quintana Roo and will have an approximate length of 280 kilometers. It will be developed in two stages, the first one with stations at Merida, Izamal and Valladolid and the second with stations at Tixkokob, Cacalchén and Tunkás. This system will reach the Cancún-Tulúm highway.
 
Its estimated cost is USD$1.3 billion dollars.
 
The SCT will launch different tenders for this project. Initially, the following three tenders are contemplated: (i) civil works, (ii) acquisition of rolling stock, and (iii) operation (initially, the operation will be awarded through a concession).

2. Coordination Agreements

The SCT published at the OGF on January 22, 2014, a Coordination Agreement (the "SCT/SoQRoo Agreement") entered into by SCT and the government of the State of Mexico (the "SoQRoo") to promote the construction, operation, use and maintenance of this project.
 
The SCT/SoQRoo Agreement sets forth respective obligations for each of the SCT and the SoQRoo. In particular, the SCT is compelled to tender the concession title. On the other hand, the SoQRoo is compelled to:

  1. Secure, in coordination with the SCT, the required right of way (ROW) for the project.
  2. Prepare the design for, as well as to construct and finance, the required urban and circulation streets/access to assist in the operation of the train.

Previously, on February 18, 2013, the SCT published at the OGF a Coordination Agreement (the "SCT/SoY Agreement") entered into by SCT and the government of the State of Yucatán (the "SoY") to promote the construction, operation, use and maintenance of this project.
 
The SCT/SoY Agreement sets forth respective obligations for each of the SCT and the SoY. Pursuant to the SCT/SoY Agreement, the SCT is compelled to tender the concession title. On the other hand, the SoY is compelled to:

  1. Secure, in coordination with the SCT, the required right of way (ROW) for the project.
  2. Prepare the design for, as well as to construct and finance, the required urban and circulation streets/access to assist in the operation of the train.
  3. Contribute with other required infrastructure, as well as to restructure the public transport and its routes.

3. Progress of the project

Based on recent publications issued on February 12, 2014, the status of the project, in particular of  the various tender processes, is the following:

  • Civil works for the first stage/track. Expected to be tendered in the second quarter of 2014 and be awarded in the third quarter of 2014.
  • Civil works for the second stage/track. Expected to be tendered in the third quarter of 2014 and be awarded in the fourth quarter of 2014.
  • Urban works in the states of Yucatán and Quintana Roo. To be tendered in the fourth quarter of 2014 and awarded in the first quarter of 2015.

D) Other Railway Projects

Light Railway Line 3 of Zapopan, Guadalajara and Tlaquepaque (Diagonal)

1. Description

This project will cross the Guadalajara metropolitan area from east to west through four metropolitan municipalities (Guadalajara, Zapopan, Tlaquepaque and Tonalá). It will have an extension of almost 22 kilometers and its estimated cost is USD$1.3 billion dollars. It will have 18 stations, 13 at ground level, and five (5) underground.

2. Coordination Agreement

The SCT published at the OGF on February 13, 2014 a Coordination Agreement (the "SCT/SoJ Agreement") entered into by SCT and the government of the State of Jalisco (the "SoJ") to promote the construction, use and operation of this expansion project.

Pursuant to the SCT/SoJ Agreement,  the SCT is compelled to:

  1. Perform the necessary actions to comply with the SCT/SoJ Agreement for the development of the project.
  2. Provide legal, technical and financial advise to the SoJ, to achieve the purposes of the SCT/SoJ Agreement.

On the other hand, the SoJ is compelled to:

  1. Carry out all administrative procedures and formalities that may be required to secure permits for the development of the project, as well as the local environmental authorization.
  2. Tender the project and grant the necessary or required contracts or concession titles.
  3. Develop the design of road and urban ways required for the optimum operation and performance of the project, as well as to elaborate basic engineering studies, geometric design and track specifications.

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Some companies that have expressed their interest in participating in some of the above referred passenger railway projects include Alstom, Bombardier, Siemens, CAF, Ansaldo, Vossloh, Mitsubishi and CNR.

On the other hand, the SCT has expressed its intention to promote and allow public-private partnerships (PPPs) to participate in all of these projects. It is still to be determined the schemes under which such PPPs will participate.