Back on the table once again is discussion of a project to construct Metro Rail for Guatemala City, which would stretch 20 kilometers from the capital and require an investment of close to $800 million.
The Municipality of Guatemala, the National Agency of Partnerships for the Development of Economic Infrastructure (Anadie), Ferrocarriles de Guatemala (Fegua) and Ferrovías signed a cooperation agreement to establish the mechanisms that allow for the Metro Rail transportation system to be put into operation.
The project that intended to connect the Tecun Uman San Marcos line with the line belonging to the Compañía de Ferrocarriles Chiapas-Mayab de México will not be viable before 2017.
The initial idea put forward by President Maldonado in 2015 was that the Mexican train known as "La Bestia" (The Beast), would enter Guatemalan soil through Tecun Uman, where it would receive cargo to be transported from Central America to Mexico and the US.
The Executive Branch is considering the cancellation of the lease agreement between Ferrovías and Cobigua after the Attorney General's Office filed a complaint alleging anomalies.
The Executive is evaluating whether it will declare invalid the lease agreement between Compañía Desarrolladora Ferroviaria (Ferrovías) and Compañía Bananera Guatemalteca Independiente (Cobigua) days after the PGN filed a suit with the Public Prosecutor to start an investigation to determine " ... who were the people responsible for signing the contract, in addition to identifying what legal standards were used by Ferrovías to finalise the aforementioned contract, since that company has no power over the state." See "Corruption denounce in the concessioning and management of Puerto Quetzal" Lahora.gt reports that "...The contract entitles Cobigua to use the port of Puerto Barrios, Izabal, until 2048, after the expiry last year of the onerous usufruct contract, awarded in 1990. In the view of the former Attorney General of the Nation, Maria Eugenia Villagran, Ferrovías had no authority to give the port administration over to Cobigua."
Although the start date had been was agreed as December 2015, it has now been announced that construction of the roads that connect will Tecun Uman with Chiapas, Mexico, will start in April.
With the payment to be made next month, the 82% stake held by Ferrovías will become property of the Guatemalan state.
This will see the fulfilment of the judgement by the International Centre for Settlement of Investment Disputes (ICSID), which ruled in favor of the company subsidized by Railroad Development Corporation (RDC) in 2012. The Finance chief, Pavel Centeno, said "we have identified the funds and the space in the budget where the money will come from".
After the court decision that awarded the Guatemalan State the rights to the railroad, President Perez Molina has announced interested in its recovery.
The president of Guatemala announced that investors, who as yet have not been identified, would be willing to bear the cost of debt that the State has with company "Ferrovías", calculated at more than $11 million.
Representatives from YooChang Construction announced an agreement to purchase 82% of the shares of the Railroad Development Corporation (RDC), owner of Ferrovías.
The announcement was made by the president of YooChang Construction on a visit to Guatemala, who next week will be holding a meeting with directors of the RDC for the purpose of defining the first payment agreement.
The Ministry of Economy is searching for legal professionals to continue the arbitration process requested by Ferrovías.
On July 7 the country must present its statement to the International Centre for Settlement of Investment Disputes (ICSID), but in the absence of professionals to take on the case, it has requested an extension.
"'We are looking for a favorable proposal in accordance with the interests of the state, for this reason we are evaluating a group of lawyers who wish to continue with the case which was being handled by the firm Arnold & Porter LLP’ said Velasquez.