The state of São Paulo, through the Secretaria de Saúde, has published tender documents for two concessions that include the construction, maintenance, non-health operation and provision of necessary equipments of certain hospitals.

The projects will tendered in two packages:

1. Package 1: Hospital Estadual de Sorocaba
2. Package 2: Hospital Estadual de São José dos Campos and Hospital Centro de Referência da Saúde da Mulher - HCRSM.

Package 1 included the CERTOO - Centro de Reabilitação e Tratamento dos Olhos e Ouvidos (Complexo Hospital da Clinicas - USP) in the concession but it was removed from the object of the contract in the last stage of the structuring process.

The projects went through public consultation in June 2013. Later, the state hired Fundação Instituto de Pesquisas Econômicas (FIPE) as an advisor to structure the hospital complexes to be built under the PPP model. Feasibility studies were carried out by Mendes Junior Trading & Engineering SA and Norberto Odebrecht.

The concession will be valid for 20 years. The estimated values (sum of annual revenues) of the packages are the following:

• Package 1: R$ 1.887.592.000 (US$867 million)
• Package 2: R$ 3.221.224.000 (US$1.48 billion)

Th estimated investment for the projects are the following:

1. Package 1: Hospital Estadual de Sorocaba - R$248.4 million (US$114 million)
2. Package 2: Hospital Estadual de São José dos Campos - R$217.1 million (US$100 million)
3. Package 2: Hospital Centro de Referência da Saúde da Mulher - HCRSM - R$306.7 million (US$141 million)

Construction is estimated to last for 30 months.

Firms will be able to bid for both concessions. If a bidder wins one of the tender processes, it would have to be 3 % lower than the second bid to win the second tender process.

The deadline for submission of proposals is December 6th.