Brazil Moves Forward with US$ 370 million Recife Metro Privatization

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Brazil's federal government has approved the transfer of management, operations, and maintenance of the Recife metro rail network in Recife, capital of northeastern state Pernambuco.

Brazil is set to grant a 30-year concession valued at BRL 2.13 billion (US$370 million) for the operation of the passenger rail network in Recife. The state-owned Companhia Brasileira de Trens Urbanos (CBTU) currently manages the system. Covering 71 km across three lines, the network serves the municipalities of Recife, Jaboatão dos Guararapes, Camaragibe, and Cabo de Santo Agostinho, and handles approximately 161,000 passengers daily.

The São Paulo state government has finalized a BRL 14.3-billion (US$ 2.5 billion) public-private partnership (PPP) agreement with local infrastructure company Comporte to expand three urban light rail lines currently run by state-owned CPTM. Comporte secured the 25-year contract by winning a competitive auction earlier this year, offering a 2.57% discount on the reference price, surpassing rival bidder Motiva, a major player in the infrastructure sector, which proposed a 1.45% discount. The contract includes the extension of lines 11, 12, and 13.

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