July 20, 2017 / 5:59 PM / a month ago

Peru says fixes snags affecting airport expansion, metro line

Aerial view of aeroplanes at Jorge Chavez International airport in Callao November 27, 2014.Mariana Bazo

LIMA (Reuters) - The government President Pedro Pablo Kuczynski said on Thursday it has resolved bureaucratic issues that had delayed construction of a $5.66 billion metro line in the capital Lima and a $1.5 billion expansion of the country's main airport.

Transportation Minister Bruno Giuffra said on local radio and TV station RPP that work on Line 2 of the metro in Lima will continue after the government approves engineering studies on Friday.

Spanish companies ACS Actividades de Construccion y Servicios SA (ACS.MC) and Fomento de Construcciones y Contratas SA (FCC.MC) head the consortium building the metro line.

The government will also sign a contract modification on Tuesday that will allow for a new terminal at Jorge Chavez International Airport to be built within five years by consortium Lima Airport Partners, led by Germany-based airport operator Fraport AG (FRAG.DE), Giuffra said.

The announcement comes as Kuczynski's government has been struggling to revive economic growth after deadly floods destroyed roads and bridges and a graft scandal involving Brazilian builder Odebrecht stalled public work projects and chilled investments.

Kuczynski took office a year ago with plans to accelerate economic growth through infrastructure development.

Reporting by Ursula Scollo,; Writing by Mitra Taj; Editing by Matthew Lewis

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