PERU: Lima Urban Cable Car System – Institutional and PPP Business Model Development Support

PPIAF supported the business model analysis for private operation and maintenance of the San Juan de Lurigancho (SJL) cable car project in Lima, Peru. The activity aimed to define a viable business model for private sector participation that met the policy objectives of the Municipality of Lima. The different options evaluated considered local laws and regulations, the timeline of the project, and the technical and operational requirements for having a fully integrated transport system (managed by the Urban Transport Authority, ATU).

PPIAF found that the Traditional Financing + Private Operation business model has the highest likelihood of success. As opposed to a PPP model, this business model encourages greater competition in the O&M bidding process, generates lower costs and provides greater value for money for the public administration. In short, it allows more flexibility and applicability to the local context.

PPIAF also prepared an international benchmarking study of 21 aerial cable car systems and business models. The study served as guide for the SJL cable car business model definition and the road map for its implementation. It provides a full picture of the various types of private and/or public partnership models used for contracting cable car systems and their technical features. Read More