May 16, 2019

North American Development Bank Board of Directors approves $1.98 billion-peso loan for Line 3 of Metrorrey

  • Loan to be provided to Regiotren for the acquisition of light rail cars

Monterrey, Nuevo León. – The North American Development Bank (NADB) announced that its Board of Directors approved a loan for up to $1.98 billion pesos (US$122.62 million) for Regiotren, S.A. de C.V., (Regiotren) to finance the acquisition of electric cars for Metrorrey Light Rail Transit Line No. 3 in Monterrey, Nuevo Leon.

The announcement was made in the framework of an event presided over by Mexican President Andrés Manuel López Obrador and Nuevo Leon Governor Jaime Rodríguez Calderón, for the presentation of the “Comprehensive Metropolitan Mobility System” by the Ministry of Communications and Transportation and the Government of Nuevo Leon. The metropolitan area of Monterrey has grown rapidly, both in terms of population and urbanization. For that reason, Metrorrey is working to expand its metro service by constructing Line 3, which will connect the northeast zone of the metropolitan area to downtown Monterrey.

NADB Deputy Managing Director Calixto Mateos-Hanel, who was present at the event, reported that NADB’s participation in the project will consist of acquiring the electric cars and leasing them to Regiotren, who in turn will lease them to Metrorrey for a period of 225 months. At the end of that period, ownership of the cars will be transferred to Metrorrey.

“We commend the Government of Nuevo Leon for implementing this vital project to expand public transportation services to new areas,” stated Mr. Mateos-Hanel. “This new line will help mobilize approximately 116,000 passengers a day more rapidly and efficiently, while also helping to prevent the emission of an estimated 25,122 metric tons a year of carbon dioxide (CO2) and other greenhouse gases in the metropolitan area of Monterrey.”

Regiotren is the special purpose company created by the consortium formed by Construcciones y Auxiliar de Ferrocarriles, S.A. (CAF), CAF México, S.A. de C.V., and CAF Investment Projects, S.A., which was awarded the 20-year concession by the State of Nuevo Leon for the purchase of specialized infrastructure and equipment for Line 3 of the metro.

Construction of the civil works where the cars will operate has been completed, and once the finance lease is executed, CAF will begin manufacturing the electric cars, with deliveries expected to begin in early 2020.