US$301 million Financing received for Ring Road development project in Brazil

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US$301 million Financing received for Ring Road development project in Brazil

The National Bank for Economic and Social Development (BNDES) has financed the construction work on the northern section of the Rodoanel in São Paulo, Brazil.

The São Paulo government is set to invest a total of BRL 1.5 billion (USD 301 million) in improvements to the Northern Section of the São Paulo Ring Road. These funds constitute the public contribution mandated by the State of São Paulo in the PPP contract with Concessionária Rodoanel Norte SPE SA, a specific-purpose company formed by Via Appia Fip Infraestrutura, the winning bidder of the Northern Section concession auction. BNDES will provide financing of BRL 1.35 billion (USD 271 million) to enable the state to meet the investment requirements for public support.

The project aims to significantly reduce traffic on Marginal Tietê, with an estimated decrease of approximately 30 thousand trucks and 54 thousand cars per day. Utilizing Rodoanel Norte will also cut travel times between the Dutra and Fernão Dias highways by 21 minutes, Dutra and Bandeirantes by 26 minutes, and Dutra and Castello Branco by 27 minutes. The shift of traffic from the Greater São Paulo Metropolitan Region to Rodoanel will additionally alleviate congestion on Marginal Tietê within the city. The Northern Section features characteristics consistent with a highway, including a design guideline speed of 120 km/h, dual lanes separated by a median, and complete access control, aligning with the standards set by the West, South, and East Sections already in operation. The road comprises 19.7 km of 4-lane roads, 26.1 km of 3-lane roads, and 14 tunnels totaling 12 km in length. The São Paulo Rodoanel aims to enhance urban traffic flow by redirecting heavy vehicle traffic away from the city center, thereby reducing congestion and allowing the internal road network to serve local traffic more efficiently.

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