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The government of Bahia state, in northeast Brazil, approved all the documentation of the consortium that will build and operate a light rail service (VLT) in state capital Salvador.
The Skyrail Bahia consortium – comprising Build Your Dreams (BYD) and Metrogreen – was the winner of the auction, which was held in May.
Investment in the VLT, which will be developed as a type of public-private partnership, is put at 1.5bn reais (US$400mn).
With the approval of the documents, the contract is expected to be signed in 30 days, according to national transport confederation CNT, which cited the state government as its source.
Works are projected to start around three months after the signing of the contract.
The VLT will link the commercial region of Salvador to the island of São João, in the municipality of Simões Filho. The 20km line will have 22 stations and capacity to transport 200,000 people a day.