Sao Paulo receives single bid for metro PPP project

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Sao Paulo receives single bid for metro PPP project

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Sao Paulo state transport agency, Secretaria de Transportes Metropolitanos, has received a single bid for the $4.2 billion (US$1.9 billion) PPP contract to build and operate Sao Paulo metro Line 18 (Bronze).

The only bidder is ABC consortium, which is formed by local construction companies Primav, Encalso, Cowan and Argentina's Benito Roggio. 

A new tender process was launched on May 19th after the first process was suspended. The new deadline for submission of proposals was July 3rd.

According to the state there were changes in the tender documents to adapt them to the new rules released on May 7th by the Brazilian Development Bank (BNDES). Those changes were supposed to attarct more competition to the tender process.

The PPP contract includes construction, operation and maintenance of civil works and systems of line 18 (with span of 14,355 km). The necessary rolling stock will also be provided and maintained by the concessionaire. The future concessionaire will be also responsible for 13 stations on Line 18 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) of the total amount excluding land acquisition costs.

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 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.

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