Consorcio Litoral Norte wins Tamoios highway PPP

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Consorcio Litoral Norte wins Tamoios highway PPP

Brazil's São Paulo state, through the state transportation agency of São Paulo (ARTESP), has awarded the Rodovia dos Tamoios highway PPP project to the Consórcio Litoral Norte, led by Queiroz Galvão.

The team beat out competition from four others bidders that submitted proposals in mid June:

The team bid for a symbolic subsidy of R$0.01 per year. The second lowest bid was R$34 million of subsidy per year, while the third was  R$58 million.

The estimated total project investment is approximately R$3.9 billion (US$1.75 billion) and the concession period will be 30 years. During the first 5 years of the contract the government plans to invest R$2.1 billion. The road will be tolled. 

The highway "Rodovia dos Tamoios"  is partly dual-lane and partly single-lane, and runs from the city of São José dos Campos, located in the Paraíba River valley in the upper plateau of São Paulo to the coastal lowlands of the city of Caraguatatuba.

The object of the project is the civil works on the stretch between km 60 +480 km to 82 +000 km of the SP-099 highway, 'Rodovia dos Tamoios". The contract also includes the operation and maintenance of the SP-099 highway, 'Rodovia dos Tamoios', between 11 +500 km to 83 +400 km, Caraguatatuba bypass and São Sebastião bypass.

The project will be the first PPP project in the state of Sao Paulo given that other similar contracts were road concessions, which is another legal instrument according to Brazilian law.

In mid September, another road PPP project was awarded in Brazil. The Minas Gerais state government had approved the only offer submitted for the Rodoanel Norte highway public private partnership (PPP). The project is the northern stretch of the metropolitan ring road. The contract term is 30 years and the estimated value of the investment is R$4 billion (US$1.81 billion).

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