News / Sao Paulo launches tender for public housing PPP project

Sao Paulo launches tender for public housing PPP project

🕔 October 8, 2014
Brazilian state planning US$3 billion rail project

The state of São Paulo, Brazil, has issued a tender process for the housing PPP project, called "Habitação de Interesse Social", that includes the development of about 12 neighborhoods in the city of Sao Paulo.

The project involves the development of 16,101 housing units, 10,143 of them will be social housing and rest for the open market. The project will be divided in 4 packages. The concession contract will have a duration of 20 years, 6 of them will be for construction.

The value of each contract, calculated based on revenue to be earned from selling housing units, are the following:

  • Package 1: R$1,876 million (US$966 million)
  • Package 2: R$1,723 million (US$888 million)
  • Package 3: R$2,193 million (US$1,130 million)
  • Package 4: R$1,545 million (US$796 million)

The total project investment is estimated at about R$4.6 billion (US$2.2 billion), of which private partners will invest R$2.6 billion (US$1.27 billion). The state Government of São Paulo plans to invest R$1.6 billion (US$782 million) and the Municipality of São Paulo will support the project with R$404 million (US$197 million).

Interested parties must submit their proposals on or before 14 November 2014. The project was subject to public consultation in May 2013 and the project structuring process had started in 2012 when a request for expression of interest for consultants was issued.

More information about the tender process can be obtained here.

In another urban project, in early May the municipality of Niterói (Rio de Janeiro, Brazil) announced that it plans to launch a tender process for a PPP project to rehabilitate the city center.

The project involves the rehabilitation, operation and maintenance of the Niterói's downtown encompassing the neighborhoods of Gragoatá and Ponta da Areia, as well as the surroundings areas of influence.

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