Infrastructure - Brazil

Pernambuco starts record US$7.33bn BRT tender in northeast Brazil

Pernambuco starts record US$7.33bn BRT tender in northeast Brazil

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Northeastern Brazil's Pernambuco state has kicked off a 15bn-real (US$7.33bn) international tender to implement a bus rapid transit (BRT) system in the metropolitan region of state capital Recife, according to a state government release.

Considered the state's largest ever procurement notice, the seven-lot tender involves a 15-year concession to operate 391 BRT lines that will run through 25 integrated terminals located in the cities of Recife and Olinda.

Each lot, which will represent no more than 20% of the entire project, will be divided into municipal regions. Companies or consortiums vying for work will only be permitted to win one lot.

To subsidize the transportation sector, the state's interstate sales taxes ICMS will not be charged on the project, representing some 41mn reais. In addition, another 11mn reais will be waived as cities Recife and Olinda have followed with the dismissal of their ISS service taxes.

TENDER SCHEDULE

The tender will be open for three months, and commercial and technical bid submissions are due in April. By May, technical bids will be opened, and by June final qualifications are expected.

An approval and the announcement of the final results is scheduled for July and a contract will be signed in August. From there, winning contractors will have up to six months to start their work.

PROJECT DETAILS

Each of the lots will demand operating a fleet of 243-498 automatic transmission air-conditioned buses, which will run along 37-77 bus lines, depending on the lot. Representing 18.2% of the entire system, lot seven contemplates the largest job. It involves operating 498 buses on 77 bus lines.

In addition to the state project, the city of Recife will be launching an eighth lot deemed lot CRT. It involves operating 95 buses along 21 lines.

While lot 8 is not expected to be up and running until 2020, the state project is expecting the first buses to be delivered in June 2014, and the remaining by the seventh year of the contract.

With some 3.75mn residents, Recife is slated to be one of the host cities of the 2014 World Cup.