Project Spotlight: US$2.88bn São Paulo metro line shows signs of life

São Paulo state postponed the expiration of the 12bn-real (US$2.88bn) metro line No. 6 concession contract, as negotiations with a construction group to assume the works advance.

According to a government spokesperson, Spanish infrastructure firm Acciona is interested in the  project.

The contract will now expire on February 9, 2020, instead of November 11, the state government said in its official gazette, to give negotiators more time to reach a deal.

"In the next weeks we will be engaged in the evaluation of all legal aspects of the future contract and we have confidence that now, with a well structured and powerful company assuming it, the project will be completed," a state transportation secretary told BNamericas on the condition of anonymity. 

The spokesperson added that the project is expected to be completed in four years after the resumption of works, but an exact timetable to restart works was not presented.

The 15.3km metro line will have 15 stations and run between the neighborhoods of Brasilândia and São Joaquim.

Works stopped in September 2016, as the concessionaires that formed the Move São Paulo consortium were facing financial problems due to their role in the Lava Jato probe.

Move São Paulo comprised investment funds and local engineering companies Odebrecht Transport, Queiroz Galvão and UTC.

Last year, China Railway Capital and China Railway First, signaled interest but negotiations came to nothing.

Only 15% of the line are finished. It has already consumed 1.7bn reais in investment, including 694mn reais from the state government. In addition, the government spent 984mn reais to expropriate 371 residences along the stretch.