MegaProject 602: Financing signed for Bahia metro PPP
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Brazil's Banco Nacional de Desenvolvimento Econômico e Social (BNDES) signed on Dec. 22nd a R$2 billion (around US$510 million) financing package for the expansion of the metro line 1 and development of the line 2 in the city of Salvador de Bahia, Brazil.
The long term financing provided by the BNDES will substitute a R$ 406 million (around US$100 million) bridge facility provided by the same bank.
The Government of state of Bahia and Companhia de Concessões Rodoviárias (CCR) signed on October 15th, 2013 the 30-year PPP contract for the implementation and operation of the metro system of Salvador de Bahia and Lauro de Freitas.
The PPP project involves the construction of Line 2, the extension of Line 1, all metro stations and the operation and maintenance of both lines for 30 years. It includes the supply of the rolling stock fleet and the installation of telecommunication and energy systems.
The system includes a total of 33.4 Km and 19 stations.
In an auction that took place on Monday, August 19th, 2013, at the Sao Paulo Stock Exchange, CCR requested a valid annual payment of R$ 127,6 million - 5 % lower than the minimum amount allowed in the tender documents.
Shareholders of CCR, construction companies Andrade Gutierrez and Camargo Correa were part of the consortium building the Line 1 of Salvador metro system.
The estimated expected investment for the project is US$1.7 billion.