The state of São Paulo, through the Secretaria de Saúde, has awarded two PPP contracts involving hospital projects in Sao Paulo to the firm Construcap CCPS Engenharia SA Trade.

The projects were tendered in two packages:

• Package 1: This package includes the construction, operation and maintenance of two hospitals in the region of Sao Paulo: Hospital Estadual de Sorocaba and CERTOO - Centro de Reabilitação e Tratamento dos Olhos e Ouvidos (Complexo Hospital da Clinicas - USP).

• Package 2: This package includes the construction, operation and maintenance of two hospitals in the region of Sao Paulo: Hospital Estadual de São José dos Campos and HCRSM.

The winning bidder was selected based on the minimum annual payment to receive form the state.

For Package 1, Construcap bid an annual payment of R5,9 million (US$2.6 million) and the Consortium Mendes Junior-Planova-Gocil bid an annual payment of R6,9 (US$3 million).

For Package 2, the only proposal was presented by Construcap who offered an annual payment of R11,6 (US$5.1 million).

Brazilian company Odebrecht Participações e Investimentos SA submitted proposal but was disqualified after appeals by other bidders.

The estimated investment for the projects are the following:

1. Package 1: Hospital Estadual de Sorocaba - R248.4 million (US$114 million)
2. Package 2: Hospital Estadual de São José dos Campos - R217.1 million (US$100 million)
3. Package 2: Hospital Centro de Referência da Saúde da Mulher - HCRSM - R306.7 million (US$141 million)

The concession will be valid for 20 years. Construction is estimated to last for 30 months.