Guatemala signs an agreement with a Mexican company for railway rehabilitation

Guatemala City, Jan 14 (Latest).- The Government of Guatemala signed an agreement this Friday with the Mexican firm Remed, a subsidiary of the company Stella Holdings, to rehabilitate the railway line for cargo transportation in the Central American country.

The agreement was signed in an act without access to the media at the Ferrovías de Guatemala (state-owned) headquarters in the center of the country’s city, with the participation of the Minister of Economy, Antonio Malouf, and Carlos Álvarez de Alba, representative Legal of Remed in Guatemala.

“Every developed country in the world has a railway line,” Malouf said in the online broadcast of the event, released by the government.

The contract between the State of Guatemala and the Mexican firm Remed includes the rehabilitation of almost 250 kilometers of railway network in Guatemalan territory that flow into Mexico, in addition to the exploitation of the transport line.

The first phase of the rehabilitation signed with Remed will allow its operation for 26 years and will have an investment by the Mexicans of 700 million dollars, according to the government chaired by Alejandro Giammattei.

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In addition to Malouf, the Minister of Communications, Javier Maldonado, and the Comptroller of Ferrovías de Guatemala, Augusto Ponce, also participated in the event.

The agreement was criticized by the Human Rights Ombudsman in Guatemala, Jordán Rodas, who filed a legal appeal this Friday before the Judicial Body against Ferrovías de Guatemala for approving the agreement without a tender, with the aim of suspending the contract. .

“The haste to sign the leasing contract for railway utility goods shows a lack of transparency,” Rodas said through his social networks.

The railway network in Guatemala has been unused for several decades, despite attempts by various governments to rehabilitate its section, which covers various points in the territory.

The Mexican firm Remed, a rail transport service company, is a subsidiary of the multinational Stella Holdings.

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