This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
The government of São Paulo, through the Municipal Housing Department (Secretaria Municipal da Habitação) and the Metropolitan Housing Unit of São Paulo (COHAB-SP - Companhia Metropolitana de Habitação de São Paulo), has launched its first housing public-private partnership project. The project entails the construction of 34,000 houses over a period of six years. It will require an investment of BRL7 billion (US$2.18 billion).
The project will also involve the construction of health clinics, schools, nurseries and commercial areas. These will be located strategically, close to major public transport links. 20% of the total investment will be dedicated to wider urban infrastructure and public facilities such as these.
The overarching aim of the project is to enable integral development of both housing and employment, especially in underutilized areas in key regions of the city.
The concessionaire will finance the project and provide operation and maintenance services both pre- and post-occupation. The company or consortium will be remunerated only after and in proportion to the delivery of the houses.
The first stage will be a 30-day public consultation, in which members of the public can propose improvements to the project. After submissions have been assessed, the authorities will prepare plans for the project that incorporate public concerns.
A minimum of 4,000 homes will be completed by 2020. The rest of the units will be completed in no more than six years. Land owned by the government and COHAB-SP will used for the construction of 17,000 units. The government's priority is that the homes be made available to families.
Around 8,000 units will be built in the district of Ipiranga, in the region of Heliópolis, divided into four sections. One of these sections will be reserved for the Centre of Urban Logistics, with the aim of increasing job opportunities and income in the district.
As well as Ipiranga, the government anticipates that the project will cover Vila Maria/Vila Guilherme, Santo Amaro, Guaianases, Lapa and Casa Verde/Cachoeirinha. Advanced studies have been carried out of other areas of the city, which will be represented in subsequent phases of the project.
The project will contribute to the government of São Paulo's aim to deliver 25,000 new houses by 2020. It also aligns with the government's Strategic Master Plan, through incorporating investments in urban infrastructure, commerce and services and rehabilitating some regions with a focus on economic, environmental and social sustainability.
In the coming weeks, the President of Brazil, Michel Temer, is expected to sign a bill regulating the concessions made during the administration of former president Dilma Rousseff. The main clause in the bill will allow companies who take on an existing concession to pay off any outstanding debt.
Read moreEcorodovias Infraestrutura e Logística Ltda. has announced that it placed first in the international tender for the concession to finance and provide public operations and maintenance services on the northern section of the Rodoanel Mário Covas highway in São Paulo for 30 years as from the date the contract comes into force.
Read moreThe State of São Paulo, through the Department of Housing, initiated the public consultation procedure for its new public-private partnership for housing.
Read moreA public consultation of the BA-052 Road System public-private partnership has been initiated by the Secretary of Infrastructure, in Bahia, Brazil, where the project is located. Bahia is a state in the north-east of the country.
Read moreEleven concessions concerning power transmission lines in Brazil have been awarded, following an auction by the Ministry of Mines and Energy on Friday 15 December. The eleven lots collectively include 4,919km of transmission lines and substations with a total capacity of 10,416 MVA, and represent BRL8.75 billion (US$2.66 billion) in investments.
Read more