IFC to structure metro concession in Brazil

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IFC to structure metro concession in Brazil

The State of São Paulo, through its Secretariat of Partnerships, signed a contract with the International Finance Corporation (IFC) – a member of the World Bank Group – to help structure and implement a concession to modernize two operational lines of its metropolitan rail system currently operated by CPTM (Companhia Paulista de Trens Metropolitanos). The project will help modernize and raise the standard of service quality to nearly 1 million users per day.

As one of the largest metropolitan areas of the Americas with 45 million inhabitants, the State of São Paulo seeks to continuously find ways to improve its public transportation network. The suburban railway system is especially important because it is responsible for transporting passengers who commute longer-distances as they live far away from areas where most employment opportunities are located. In addition, the improvement of quality and efficiency of its public urban transportation, with a potential increase in the number of users and trips served, will help São Paulo to have more efficient and less polluting transportation modes. Higher usage of public transport in a city can have direct effects on air quality, especially with the adoption of renewable electric modes of transport, bringing health benefits to the overall population.

IFC will carry out detailed studies and assist the State of São Paulo in the structuring, promotion and bidding process of a viable, bankable and competitive concession for the public railway transportation services currently provided by CPTM in the existing lines 8 and 9. IFC will develop an agreement to help the São Paulo State partner with a private company that will be responsible for the refurbishing of all stations of Lines 8 and 9, including adaptations to follow universal accessibility standards; for revamping and modernizing the network structure; for improving the power supply systems, and for implementing a new operational control center.

IFC is using its global experience in concessions and infrastructure to bring the best international practices and help make this an internationally competitive and transparent process. Since 2016, IFC has also been advising the Government of São Paulo on its road concession program, which will eventually auction about 3,000 kilometers of highways.

This project is being carried out with the support of the Private Sector Participation Promotion Program, a partnership of IFC, the Brazilian Development Bank (BNDES), and the Inter-American Development Bank (IDB), created in 2017 to support the implementation of infrastructure projects in Brazil. The program aims to support the participation of the private sector as a partner to governments – at the municipal, state and federal levels –, by helping them to structure concession and public-private partnerships projects in several infrastructure sectors, such as education, health, highways, and airports.

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