São Paulo governor kicks off PPP tender for US$1.7bn monorail

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Thursday, January 30, 2014

Brazil's São Paulo state governor Geraldo Alckmin has announced a tender to concession the state capital's metro line 18, also known as the bronze line, budgeted at some 4.2bn reais (US$1.73bn), according to a state government release.

The public-private partnership involves construction as well as the 25-year operation of the line. The line will be a monorail stretching some 15km between São Paulo city and the neighboring ABC region, with 13 stations.

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The ABC region includes the cities of Santo André, São Bernardo do Campo and São Caetano do Sul. The new line will connect the southern neighborhood of Tamanduateí in the state capital to Djalma Dutra in São Bernardo do Campo.

Of the total budget, 1.9bn reais will come from the state government and 1.9bn reais from the private sector, the release said.

The remaining 406mn reais will be used for expropriation costs. Most of that funding, some 400mn reais, will come from the federal government under phase 2 of its growth acceleration plan, PAC.

Tender documents will be available from February 3 to April 4 and offers are due April 7, according to the state's official gazette.

"If we don't experience any legal setbacks, we see a contract being singed in about 90 days," said Alckmin.