Concession expiration extended for metro PPP in Brazil

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Concession expiration extended for metro PPP in Brazil

The State Government of Sao Paulo in Brazil has extended the concession expiration period to the Move Sao Paulo consortium, responsible for the construction of Line 6 of the Metro - Orange PPP project. The new contract expiration deadline is May 24, 2020.

Line 6 of the Sao Paulo metro has been pending construction completion since 2016, when the State withdrew Move São Paulo consortium, made up of contractors Odebrecht, Queiroz Galvão and UTC due to the investigation in which these companies were involved.

In 2019 Acciona has presented a proposal to take over the construction and operation of Line 6-Orange. It reached an agreement with the contracting authority in February 2020 to overtake the concession of the project, estimated at around EUR 2 billion (USD 2.2 billion).

Acciona consortium will be able to carry out the works only after the original concession expiration date. According to the agreement, Acciona will have a period of four years to complete the work. Subsequently, Acciona will operate and maintain the project for 20 years.

The metro line 6 route Brasilândia-San Joaquin will be 15 km long and will have 15 stations. 


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