Expression of Interest for Pre-Feasibility Study for the Quito - Guayaquil Freight Rail Corridor This is a prefeasibility assessment for a potential freight rail corridor option between the capital of Ecuador (Quito), in the center of the country and the Pacific coast (Guayaquil) and intermediate cities; which undoubtedly contributes significantly to the countrys competitiveness, improvement of air quality, energy transition and the reduction of freight costs. The consultant is required to identify and assess at least three alternative routes, supported by a robust and well-justified multi-criteria analysis or value for money, to substantiate the selection of the most technically, economically, and environmentally suitable option. As well as a market sounding for to explore the private sector appetite to invest and finance in this potential project. The World Bank will support the Ministry of Infrastructure and Transport (MIT) efforts to accelerate the the decarbonization of freight and improve rail logistics under a private capital mobilization approach (PCM) for Ecuador (pre-feasibility study Quito-Guayaquil railway corridor). This study will analyze current and projected freight flows to identify the feasibility of transferring these flows to rail, based on the competitive advantages and strengths of rail compared to existing competing road corridors, as well as identify the challenges and recommendations. To this end, the rail service under study and the characteristics of competing corridors must be characterized, primarily in terms of time, reliability, cost, and cargo handling, according to the requirements of freight (containers, bulk, vehicles, among others). This analysis will include opportunities for interaction with other transport modes. From this bi-modal analysis, conclusions should be drawn and the foundations of a freight transport strategy for the selected corridor should be defined under a value for money (VfM) criteria. The necessary market studies (origin-destination survey) will be conducted to assess a demand estimate, 30-year freight projections, a competitiveness analysis, and freight transport fare for the corridor, its potential connections. As well as the private sectors interest in the project. It is essential to carry out a technical, basic social, and environmental prefeasibility study that establishes the overall viability of the selected corridor. On the technical side, this should include a preliminary assessment of alignment options, construction requirements, and the definition of the superstructure elementsrail tracks, ballast, sleepers, signaling systems, electrification, station facilities, patio, workshops and rolling stockbased on available data and benchmarks from comparable projects. The study will include the construction of logistics facilities to support freight rail, the integration with existing transport networks, and potential social and environmental impacts and risks (e.g. potential negative impact on current truck operators, drivers, etc.), ensuring compliance with national regulations and World Bank standards. In parallel, a financial model must be developed to estimate capital expenditures (CAPEX), operating and maintenance costs (OPEX), and potential revenue streams from freight services, and ancillary activities. This model should test different structuring scenarios under PPP schemes, such as Build-Operate-Transfer (BOT) or other hybrid schemes with or without government support, based on a risk analysis allocation and mitigation measures. The financial analysis will provide clarity on commercial viability, project profitability, fiscal implications (if any), and risk allocation, ensuring that the railway is both attractive to investors/lenders and sustainable for the public sector. A commercially financed will be the base scenario, without government fiscal commitments, including the level of tariff that provides at least a net present value (NPV) equal to zero. Other scenarios could include options with minimum revenue guarantee and/or partial subsidies to CAPEX. The financial model should include other sources of revenues and CAPEX associated to Modal Interchange Centers or logistics parks; therefore, operations with multimodal capacity must be included. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/6725/view.html
