Brazil's São Paulo state approves US$750mn expansion works of Metro Line 4-Yellow

The Brazilian São Paulo state government announced authorization for the 3.3km expansion of the Metro's Yellow Line 4, a project that will require investments of 4bn reais (US$750mn).

The work will take place after the state government reaches an agreement with the concessionaire ViaQuatro, responsible for operating Line 4-Yellow, regarding an addendum to the concession contract.

The addendum guarantees the resources for the expansion of the line to the municipality of Taboão da Serra.

The concessionaire is controlled by infrastructure company Motiva, which holds a 75% stake, while RuasInvest holds a 15% stake and Japan's Mitsui & Co. holds a 10% stake. ViaQuatro signed the public-private partnership (PPP) contract in 2006, with a 30-year term. Now, with the addendum, the contract will be extended for another 20 years.

The state government will invest 3bn reais in the project, with support from financing from the World Bank, while the concessionaire will contribute approximately 1bn reais.

The value includes the execution of civil works on the 3.3km of track that will connect Vila Sônia station to the future Chácara do Jockey and Taboão da Serra stations.

The project also includes the construction of a power substation, the implementation of operational systems, and the acquisition of six new trains. Completion is expected to take 48 to 64 months.

The new connection will integrate with public transport at the Vila Sônia, São Paulo-Morumbi, Butantã and Taboão da Serra bus terminals, as well as access points on Avenida Monsenhor Manfredo Leite and the Avenida Professor Francisco Morato corridor.

The extension is expected to add more than 50,000 passengers per day to the metropolitan region's subway system.

(The original version of this content was written in Portuguese)