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