Brazil Launches Multimillion PPP for Electric Buses and Charging Depot

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Brazil Launches Multimillion PPP for Electric Buses and Charging Depot

The Municipality of Rio de Janeiro has launched a R$509 million (US$98.2 million) public-private partnership with a private-sector concessionaire to deploy 175 battery-electric buses and develop a new charging and maintenance depot in Rio de Janeiro, Brazil.

The Rio de Janeiro Electric Bus PPP is a public-private partnership aimed at accelerating the electrification of the city’s public transport system. The project covers the acquisition of 175 battery-electric buses and the development of a dedicated public depot with charging infrastructure in Maré, Rio de Janeiro, Brazil. The buses are scheduled to begin entering the Sistema RIO network in the second half of 2027. The total investment is estimated at R$509 million (US$98.2 million). BNDES is providing R$329 million (about US$63.5 million) through its Climate Fund, specifically to finance the acquisition of the battery-electric buses. The remaining investment comprises approximately R$141.2 million (US$27.13 mn) from the concessionaire and R$38.8 million (US$7.45 mn) from the municipality. The project will be implemented as an administrative PPP with a 16-year contract, consisting of one year for implementation and 15 years of operation. The private concessionaire will be responsible for the partial acquisition of the buses, installation of charging infrastructure, construction works at the depot, as well as operation and maintenance of the assets. 

The 175 buses will be based at a new public electric-bus depot in Maré, on Rua Novo Horizonte in Vila do João, opposite the Oswaldo Cruz Foundation on Avenida Brasil. The overall site covers approximately 41,000 m², with around 23,000 m² allocated to the electric-bus depot. Facilities will include bus parking, maintenance areas, administrative and storage facilities, and electrical infrastructure for charging. Charging is expected to take place primarily overnight. The buses will form part of the Lote Elétrico of the Sistema RIO and are expected to electrify the entire bus fleet operating from Terminal Gentileza. The municipality estimates that the project could avoid approximately 13,300 tonnes of CO₂ equivalent annually, or around 199,400 tonnes over the 16-year contract period. The city also expects reductions in local air pollutants and noise from bus operations. 

During operation, the first electric depot is expected to involve approximately 490 drivers, 35 inspectors and 10 dispatchers, in addition to maintenance and administrative personnel. Around 100 jobs are expected during implementation in areas such as construction, charger installation, electrical works, engineering, equipment manufacturing and system testing. The project forms part of Rio de Janeiro's broader strategy to increase zero-emission buses, with the city's Sustainable Development Plan targeting 20% zero-emission vehicles in the municipal bus fleet by 2030, equivalent to about 1,000 buses. 

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