Sao Paulo will launch tender for $1.5b metro PPP project next week

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Sao Paulo will launch tender for $1.5b metro PPP project next week

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The state of São Paulo, through the Secretaria dos Transportes Metropolitanos (STM), has announced that tender documents for the concession of Line 18 - (Bronze) of Sao Paulo metro network will be published on Monday, January 27th.

Publication of tender documents was expected for today but São Paulo's government said that pending bureaucratic tasks have delayed the announcement.

The PPP contract will include the construction, operation and maintenance of civil works and systems. The necessary rolling stock will be also provided and maintained by the concessionaire.

The monorail will connect the municipalities of Santo André, São Bernardo do Campo and São Caetano do Sul to the metropolitan region of São Paulo.

The future concessionaire will be responsible for 12 stations on Line 18 (with span of 14,355 km) and the maintenance facilities.

The length of the contract will be 25 years, 4 years for the implementation of the project and 21 years of operation. The government will fund 50 % of the investment (around US$780 million).

Bidding will be open to international companies and consortiums. The winner will be based on the lowest annual government reimbursement.

The structuring of the PPP project was carried in collaboration with the private sector, via Procedure of Expression of Interest (PMI). Four companies delivered the feasibility studies requested by the state. However, only part of the studies received were used for the final structuring of the contract: 34.38% from Invepar - Construtora Queiroz Galvão - Bombardier's study and 46.38 % from Odebrecht's study. The studies submitted by other bidders were not used.

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