São Paulo seeks metro operators in Europe

Monday, April 17, 2017

A São Paulo government delegation is seeking companies from Europe and Asia to bid to operate lines No. 5 (lilac) and 17 (gold) of the Brazilian city's subway, state metropolitan transport secretary Clodoaldo Pelissioni told BNamericas.

"On Tuesday in Brussels, I will be presenting a 20-year concession opportunity for the two lines. Present will be investment funds, financial institutions and infrastructure operators from Europe and Asia," the official said.

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The Belgian capital will be the delegation's only stop in Europe. The only other presentation will take place in Brazil at the end of April or early May, Pelissioni said.

The official wants to attract at least four or five infrastructure operators to the bidding table, and eventually award the contract to a top quality firm that offers a high canon payment. The minimum has been set at 190mn reais (US$61mn).

A total of 1mn passengers a day are expected to use the two lines, 850,000 on line No. 5 and 185,000 for monorail line No. 17. The two were combined due to the smaller demand on the latter.

The eventual concession holder will be remunerated 1.63 reais per passenger transported, according to Pelissioni.

Under-construction line No. 5 will be 20.1km and have two train yards and 17 stations. Also under construction, line 17 will be 7.7km and have one train yard and eight stations.