Tender launched for Sao Paulo's highway PPP

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Tender launched for Sao Paulo's highway PPP

The state transportation agency of São Paulo (ARTESP) announced that it launched the tender process for the  Rodovia dos Tamoios highway PPP project on 28 May 2014.

Interested parties must submit their proposals on or before 5 May 2014. Bidding is open to foreign and domestic companies as well as investment and pension funds. The winner will be decided on the basis of the lowest annual concession payment requested.

The following companies, among others, have shown interest in the project:

The estimated total project investment is approximately R$ 3.7 billion (US$1.6 billion) and the concession period will be 30 years. The expected internal rate of return (IRR) for the project is 8 % according to a project presentation.

The road will be tolled but the concessionaire will receive annual payments from the Government, which also add resources to the total cost of the project.

The highway "Rodovia dos Tamoios"  is partly dual-lane and partly single-lane, and runs from the city of São José dos Campos, located in the Paraíba River valley in the upper plateau of São Paulo to the coastal lowlands of the city of Caraguatatuba.

The object of the project is:

  • the operation and maintenance of the SP-099 highway, 'Rodovia dos Tamoios', between 11 +500 km to 83 +400 km, Caraguatatuba bypass and São Sebastião bypass.
  • civil works on the stretch between km 60 +480 km to 82 +000 km of the SP-099 highway, "Rodovia dos Tamoios."
See tender documents: http://www.artesp.sp.gov.br/rodovias-ppp-nova-tamoios.html

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