Sao Paulo receives one bid for US$3.9 billion Line 6 subway PPP

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Sao Paulo receives one bid for US$3.9 billion Line 6 subway PPP Metro Sao Paulo

The state Government of São Paulo received only one bid for the construction, operation and maintenance of São Paulo metro Line 6 on October 31. The consortium 'Move São Paulo', formed by Odebrecht, Queiroz Galvão, UTC Participações and Eco Realty Fundo de Investimentos was the only bidder for the project.

According to the tender documents, the concessionaire will receive an annual payment from the seventh year of the contract on. This payment was the bid parameter and the consortium requested just a 0.004 % discount over the maximum bid price. This strategy is common among infrastructure developers when they know that no other consortia are bidding for the project and the project is strategic for them.

The government announced that tomorrow Wednesday they will make public whether they award the contract to the only consortium or not.

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.

Although other major local construction companies and infrastructure developers including CCR Group had expressed interest in bidding for the project, there was finally only bidder.

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
List of country news

Country news

  • November 07, 2013

    Firms line up for sewage PPP contract in Guarulhos Sao Paulo

    Seven companies have submitted suggestions in a public consultation process initiated for a sewage public private partnership project  in the municipality of Guarulhos, in the state of São Paulo (Brazil). Read more
  • November 08, 2013

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

    This payment was the bid parameter and the consortium requested just a 0.004 % discount over the maximum bid price. Read more
  • November 11, 2013

    Brazil's Distrito Federal seeks advisor for health PPP project

    Brazil's Distrito Federal has released a Request for expressions of Interest (PMI) for the preparation of Feasibility Studies of a potential public private partnership project for operation and clinical management of the Military Police's Medical Center of Distrito Federal. Read more
  • November 19, 2013

    Five teams bid for Brazil airport concessions

    Invepar is one of the companies that submitted bids for the airports. Invepar's Chairman, Gustavo Rocha, confirmed the company was bidding but he didn't reveal other names in the consortium. Other sources said Invepar joined a consortium also composed by EcoRodovias (42.505 %) and Fraport (42.505 %). Given that it won one of the airport concessions last year, Invepar's stake has to be lower than 15 %. Read more
  • November 20, 2013

    Parana starts public consultation of highway PPP

    The state of Paraná, Brazil, has announced it has published tender documents for the public consultation of the PPP contract: duplication, upgrade, operation and maintenance of the corridor PR-323 (PR-323, PRC-487 and PRC-272) between Maringá (link with PR-317) and Access to Francisco Alves. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.