Sao Paulo awards metro PPP project to a Odebrecht-led consortium

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Sao Paulo awards metro PPP project to a Odebrecht-led consortium Metro Sao Paulo

The state Government of São Paulo has awarded the PPP contract for the construction, operation and maintenance of São Paulo metro Line 6 to the consortium 'Move São Paulo', formed by OdebrechtQueiroz GalvãoUTC Participações and Eco Realty Fundo de Investimentos, who was the only bidder for the project.

This payment was the bid parameter and the consortium requested just a 0.004 % discount over the maximum bid price.

The tender for the 13.5km line was originally launched on February 8 with a deadline of May 9 but bidders reported problems with land acquisition costs included in the tender documents.

The re-scheduled deadline for submission of proposals for the R$8 billion ($US 3.9 billion) PPP project was October 31.

The north-south Line 6 will have 15 stations and will link Brasilândia with São Joaquim on Line 1. It is considered one of the most difficult metro lines to build because of the need to tunnel beneath the Tietê River at a depth of more than 60m.

The object of the Public-Private Partnership for Line 6 involves:

  • Necessary expropriations and resettlements
  • Design projects
  • Obtaining of environmental licences for installation and operation
  • Engineering works (tunnels, stations and yards)
  • Acquisition of systems, equipment and rolling stock
  • Operation and maintenance of Line 6 during the concession period
  • Concession period: total 25 year contract, 6 years for implantation / deployment & 19 for O&M

Once this contract has been awarded, the Government of Sao Paulo plans to tender Line 18 - Bronze and Line 2 - Green also under Public Private Partnership contracts.

 
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