São Paulo government launch US$2 billion housing PPP

São Paulo government launch US$2 billion housing PPP

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The government of São Paulo, through the Municipal Housing Department (Secretaria Municipal da Habitação) and the Metropolitan Housing Unit of São Paulo (COHAB-SP - Companhia Metropolitana de Habitação de São Paulo), has launched its first housing public-private partnership project. The project entails the construction of 34,000 houses over a period of six years. It will require an investment of BRL7 billion (US$2.18 billion)

The project will also involve the construction of health clinics, schools, nurseries and commercial areas. These will be located strategically, close to major public transport links. 20% of the total investment will be dedicated to wider urban infrastructure and public facilities such as these.

The overarching aim of the project is to enable integral development of both housing and employment, especially in underutilized areas in key regions of the city.

The concessionaire will finance the project and provide operation and maintenance services both pre- and post-occupation. The company or consortium will be remunerated only after and in proportion to the delivery of the houses.

The first stage will be a 30-day public consultation, in which members of the public can propose improvements to the project. After submissions have been assessed, the authorities will prepare plans for the project that incorporate public concerns.

A minimum of 4,000 homes will be completed by 2020. The rest of the units will be completed in no more than six yearsLand owned by the government and COHAB-SP will used for the construction of 17,000 units. The government's priority is that the homes be made available to families.

Around 8,000 units will be built in the district of Ipiranga, in the region of Heliópolis, divided into four sections. One of these sections will be reserved for the Centre of Urban Logistics, with the aim of increasing job opportunities and income in the district.

As well as Ipiranga, the government anticipates that the project will cover Vila Maria/Vila Guilherme, Santo Amaro, Guaianases, Lapa and Casa Verde/Cachoeirinha. Advanced studies have been carried out of other areas of the city, which will be represented in subsequent phases of the project.

The project will contribute to the government of São Paulo's aim to deliver 25,000 new houses by 2020. It also aligns with the government's Strategic Master Plan, through incorporating investments in urban infrastructure, commerce and services and rehabilitating some regions with a focus on economic, environmental and social sustainability.

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