Sao Paulo approves PPP for social housing project

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Sao Paulo approves PPP for social housing project

The state of São Paulo, Brazil, has approved the final modeling for the housing PPP project called "Habitação de Interesse Social", to develop about 12 neighborhoods in the city of Sao Paulo. The state will launch the tender process very soon.

The project was subject to public consultation in May 2013 and the project structuring process had started in 2012 when a request for expression of interest for consultants was issued.

The total project investment is estimated at about R$4.6 billion (US$2.2 billion), R$2.6 billion (US$1.27 billion) to be made by the private partners. The state Government of São Paulo plans to invest R$1.6 billion (US$782 million) and the Municipality of São Paulo will support the project with R$404 million (US$197 million).

The project involves the development of 16,101 housing units, 10,143 of them will be social housing and rest for the open market. The project will be divided in 4 packages. The concession contract will have a duration of 20 years, 6 of them will be for construction.

The state also approved that 50 % of the land for the project will be provided by the state and the concessionaire will be in charge of acquiring the rest.

In another urban project, in early May the municipality of Niterói (Rio de Janeiro, Brazil) announced that it plans to launch a tender process for a PPP project to rehabilitate the city center. In January 2013, three companies submitted expressions of interest for conducting the feasibility studies, Construtora Norberto Odebrecht Brasil S.A.,Construtora Andrade Gutierrez S.A. and Construtora OAS S.A.

The project involves the rehabilitation, operation and maintenance of the Niterói's downtown encompassing the neighborhoods of Gragoatá and Ponta da Areia, as well as the surroundings areas of influence.

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