Sao Paulo delays street lighting PPP

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Sao Paulo delays street lighting PPP

The municipality of São Paulo has delayed the deadline to submit proposals for the Street lighting PPP in Sao Paulo city, Brazil

To be more specific, the deadline for submission of proposals has been delayed from 14 January to 3 February 2016. Additionaly, the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has confirmed it will guarantee payments during the concession period.

Under the PPP contract, the selected bidder will be responsible for the modernization, optimization, expansion, operation and maintenance of the city's street lighting infrastructure.

The contract will have a period of 20 years and its estimated value is R$7,3 billion (around US$1.8 billion). The winner will be the team requesting the lowest monthly payment with a ceiling of R$30.16 million (around US$7.45 million).

In November 2015 the municipality published again the tender documents for the project. Also in November, the Sao Paulo Court gave the green light for the project.

In June 2015 the municipality had suspended the tender process for the project. The decision was taken afeter several companies including Abilux - Associação Brasileira da Indústria de Iluminação, F.M. Rodrigues & Cia Ltda., CPFL Eficiência Energética S.A. and GE Iluminação do Brasil Comércio e Lâmpadas Ltda. requested clarification regarding the tender documents.

Sao Paulo is the largest city in Brazil, the largest city in the Americas and the world's twelfth largest city by population. The city has a total area of 7,944 km². The metropolis has the largest economy by GDP in Latin America and southern hemisphere.

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