A consortium of Construcciones y Auxiliar de Ferrocarriles (CAF) and Revenga Smart Solutions has won a signalling contract for the Ferrocarril Central project in Uruguay.

As per the terms of the €50m contract, the CAF consortium will be responsible for design, production and installation, as well as the testing and commissioning of the communication and signalling systems for the rail project.

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Of the total contract value, the share of CAF is worth €30m. CAF will implement new electronic interlocking, a centralised Traffic Control system and the ERTMS L1 system.

The contract was awarded by the Construction Consortium Ferrocarril Central, which consists of Sacyr, NGE Group and Uruguayan engineering companies Saceem and Berkes.

Sacyr holds a 40% stake in the consortium, while Saceem and Berkes own 27% and 6% stake, respectively. French company NGE holds the remaining 27% stake in the consortium. The consortium received the contract in May.

The rail project comprises the rehabilitation and construction of a 273km railway line, which connects Uruguayan capital Montevideo and the city of Paso de los Toros.

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The project aims to improve and promote railway freight movement as part of the Uruguay Government’s infrastructure plan.

It is being undertaken by the Uruguay Ministry of Transport and Public Works via a public-private partnership (PPP).

Last month, the Sacyr-led consortium raised a senior loan of $855m to finance the Uruguay Central Railroad project. The project will need an investment of $1.07bn. The consortium raised funds from SMBC, Intesa San Paolo, IDB, CAF and CAFAM.