Foreign groups eye Brazil's US$2bn Curitiba metro tender

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Thursday, September 25, 2014

Companies from at least seven countries are eying Brazil's tender to build and operate the blue line metro in Paraná state capital Curitiba, valued at some 4.7bn reais (US$1.94bn).

Besides numerous Brazilian firms, the main foreign companies that have requested tender documents are Germany's Siemens, Canada's Bombardier, Italy's Impregilo, Finland's Pöyry, Argentina's Benito Roggio, and Spain's CAF and Acciona, according to procurement documents.

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Among the principal Brazilian companies are Triunfo Participações e Investimentos (TPI), Carioca Christiani-Nielsen, CR Almeida, Vega Engenharia, TIISA Triunfo IESA, OAS, and Queiroz Galvão.

CONCESSION DETAILS

The 35-year concession calls for the building of a 17.6km metro line with 15 stations. The fare is set at 2.55 reais, and some 419,000 passengers are expected to use the line daily.

A consortium, led by TPI, was hired to carry out the initial project studies. The initiative is expected to generate some 18.2bn reais in business during the concession period.

TENDER UPDATE

In August, Paraná state audit court TCE suspended the project's tender process – for a second time – due to various irregularities such as a lack of clear guidelines for environmental licensing and a lack of clarity regarding the current public-private partnership (PPP) model.

After requesting an extension to submit an explanation, Curitiba city hall handed in documents to TCE on September 22. The city is currently awaiting the court's response, according to a local government release.

BNamericas will host its 5th South America Infrastructure Summit in Colombia on October 22-23.