Guatemala begins the execution of freight train studies


Korean experts will execute the action plan defined by CABEI, the Republic of Korea and the Government of Guatemala will be executed to develop the pre-feasibility study of the railway project.

Guatemala City, February, 01, 2021. Within the framework of the comprehensive regional rail transport network initiative promoted by the Central American Bank for Economic Integration (CABEI), the "Pre-feasibility Studies of the Guatemalan Rail Connection Segment Project in Central America" Inception Seminar ​​was held on thursday, January 28.

With this event, the execution of this initiative of regional relevance led by the Central American Bank for Economic Integration (CABEI), the Republic of Korea through the Knowledge Sharing Program (KSP), the implementing agency of the studies, the the Export-Import Bank of Korea (Korea Eximbank), and the Ministry of Public Finance and Railways of Guatemala (FEGUA) begins.

In this regard, the Executive President of CABEI, Dr. Dante Mossi, mention that this event takes place thanks to the incorporation of a partner with high credit quality such as the Republic of Korea, since its membership, it has generated a positive and immediate impact in the Bank's financial profile. Also strengthening institutional governance and cooperation schemes signed between the Bank and Korean institutions in favor of its member countries, in this case Guatemala.

During the event, CABEI's Executive VicePresident, Mr. Jaime Diaz, highlighted that this seminar marks a historic milestone for the pre-feasibility studies of the “Guatemalan segment of a railway freight connection in Central America” project, that becomes very important towards the route of integration and promotion of sustainable competitiveness, to position Guatemala and the region before the world, through investments aimed at the modernization of rail transport, and which in turn are aligned with the goals of sustainable development in the region.

During the Seminar, FEGUA presented the diagnosis of the railway sector and the main transportation initiatives identified in the country. Also, the Consulting Firm hired by the Republic of Korea to carry out the studies, Korea Engineering Consultant Corp. Consortium  presented the scope of the project's studies, the implementation plan, and the expected results.

The preliminary studies of this project are financed by the Knowledge Sharing Program (KSP) for an amount of US $ 466,900, as part of a non-reimbursable technical cooperation granted by the Republic of Korea to Guatemala through the Joint Consulting Project with the CABEI.

The Minister of Public Finance of Guatemala Mr. Alvaro Gonzalez Ricci commented “the transport connection between the country's ports is essential because it will enable us to fulfill the objectives of the Guatemala’s National Development Plan. The Ministry of Finance is fully available to provide the necessary support to successfully develop this phase of the freight rail project ”.

In addition, the General Director of the Multilateral Development Banks Operations Department of the Export-Import Bank of Korea (Korea Eximbank), Mr. Junghwa Seo, stated “I have been able to reaffirm the importance of the project during the development of the seminar. We will be at your disposal from the KSP to help improve the quality of life of the citizens of Guatemala through this project, also to contribute with our knowledge of the sector ”.

Korean experts in engineering, mobility and transportation are planning to visit the country to develop consultation, research and analysis processes of the railway sector in Guatemala to determine the technical and financial viability of this project.