The Conselho Gestor de Parcerias Público-Privadas (CGPPP) of Sao Paulo will issue a Request for qualifications (RFQ) for Social Housing PPP Project to build 20.221 housing units in the city center of Sao Paulo. The first Public Private Partnership contract in the area of social housing in the country will provide low income families with necessary housing.

The investment in the projects will be R$4.6 billion (US$2.2 billion), R$ 2.6 billion (US$1.27 billion) to be made by the private partners. The State Government of São Paulo will invest $ 1.6 billion (US$782 million). In an agreement to be signed with the State, the Municipality of São Paulo should support the project with R$404 million (US$197 million).

After 32 companies registered their interest for the Feasibility Study, a total of five groups have submitted Feasibility Studies:

• Bairro Novo Empreendimentos Imobiliários S/A and Arquiteto Pedro Taddei e Associados Ltda.;
• Brookfield Empreendimentos Econômicos S/A and Concremat Engenharia e Tecnologia S/A;
• CITTAD-Empreendimentos Ltda.;
• Consórcio Reviva São Paulo (Impacto Gouvêa Construtora e Incorporadora Ltda. and MPE-Montagens e Projetos Especiais S/A);
• URBEM-Instituto de Urbanismo and Estudos para a Metrópole.

According to the final decision by CGPPP, the feasibility studies were used as follows:

• 58% of URBEM-Instituto de Urbanismo and Estudos para a Metrópole;
• 6% of Consórcio Reviva São Paulo;
• 6% of Bairro Novo Empreendimentos Imobiliários S/A and Arquiteto Pedro Taddei e Associados Ltda.

Some of the rules in the tender documents will be:

• international competition (admission of Brazilian and foreign companies that have license to operate in the country),
• phase inversion, 
• tender split in three packages (each bidder can get more than one package)
• allows the participation of companies or consortiums.

The private partner will be selected in October 2013. The projects should be completed in a period of time of six years.

Source: PPP Brasil