Sao Paulo launches second tender process for a highway PPP

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Sao Paulo launches second tender process for a highway PPP

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The State Government of São Paulo, through Artesp (Transport Agency of São Paulo State), has launched the tender process to seek a private partner for the Itaporanga-Franca Lot, "Rodovias dos Calçados” (or Road of the Shoes), of the São Paulo Road Concessions Program.

The project involves 720 kilometers of roads throughout 35 cities of the state. The project will feature numerous technological innovations on operation processes and discounts on toll rates, as well as the duplication of 274 kilometer of roads between the Central and Bauru regions.

The concession involves an investment of approximately BRL5 billion (US$1.5 billion) over 30 years. Of this total, BLR1 billion (US$305 million) goes to the main works of expansion of the road network and BLR2.4 billion referring to the restoration and conservation during the 30 years of contract.

The concession attempts to respond the demands of all these cities that are crossed by this project. It also foresees revisions in the contract every four years, which may facilitate new investments that will be managed in accordance with future needs or future reality. That will mean that new investments, such as duplication or improvement of roads accesses, can be created, brought forward or canceled during the tenor of the contract.

The international bidding of the “Roads of the Shoes” places the roads to be granted among the most modern in the world. There will be WiFi available in the entire extension for better access to information and utility services. Users will receive information through SMS, WhatsApp, etc, on accidents, roads blockages, detours and other road information, including weather, security and traffic. This innovation will facilitate a new channel of communication between concessionaires and the road users, and bring more security and convenience.

In addition, the roads will be 100% covered with CCTV (closed-circuit television) to improve security. Equipment to weight trucks while in movement and bicycle lanes in urban areas are other innovations in the Roads of the Shoes Industry.

As we reported in late November, the State of Sao Paulo also announced the opening of the bidding process to the concession contract for the design, build, finance operate and maintain the road system lot called “Rodovias Centro-Oeste Paulista”.

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