Argentina awards $1 bln contract for rail project

BUENOS AIRES, Jan 23 (Reuters) - Argentina awarded a contract worth more than $1 billion on Wednesday to an international consortium as part of a rail project to put one of the capital's busiest commuter lines underground.

The consortium will take charge of the first phase of a larger scheme to build more than 32 kilometers (about 20 miles) of tunnels for the Sarmiento railway, which links Buenos Aires to the city's western suburbs.

The Nuevo Sarmiento group is made up of Spain's Comsa Group, Italy's Ghella, Brazil's Constructora Norberto Odebrecht and the Argentine firm Iecsa. The first phase envisions the construction of 9 kilometers (5.5 miles) of tunnel in three years.

Some 10 million passengers travel on the Sarmiento line per month, but the line cuts through built-up areas, routinely causing traffic delays and accidents at level crossings.

"(The works will allow) a substantial improvement in the line's quality of service, increasing the frequency of trains and reducing journey times," the Transport Secretariat said in a statement.

Argentina's privatized railways carry millions of passengers every day, but they often complain of the poor quality of the service.

Last week, the government signed a contract worth $1.48 billion with a consortium led by heavy engineering group Alstom (ALSO.PA: Quote, Profile, Research, Stock Buzz) to build a high-speed rail link to connect Buenos Aires with the central cities of Rosario and Cordoba. (Reporting by Lucas Bergman; Writing by Helen Popper; Editing by Derek Caney)