The State Government of Sao Paulo has canceled the ongoing PPP contract for the railway project Metro Line 6 - Orange.
The winning bidding consortium, Move São Paulo, was made up of contractors Odebrecht, Queiroz Galvão and UTC, all involved in the crimes investigated by Operation Lava Jato. Therefore, they did not have financing expected to be released by the National Bank for Economic and Social Development (BNDES). Without funds, the works were abandoned in 2016.
The state authority plans to retender the project for new contractors. According to local sources, the government carried out negotiations with Spain's Cintra Ferrovial and China's China Railway Engineering Corporation to get involved in the consortium and could bring in resources, but the deals were not closed.
Tender information will be launched in the coming days but still not clear if the PPP model will still be used.
Country updates
-
-
December 21, 2018
National Bank for Economic and Social Development (BNDES) selects manager for Credit Rights Investment Fund
The National Bank for Economic and Social Development (BNDES) in Brazil has announced JGP Asset Management as the manager of a new Credit Rights Investment Fund (FIDC). FIDC is dedicated to investing...
Read more -
December 21, 2018
Fraport secures US$320 million financing for Brazilian airport concession
The National Bank for Economic and Social Development (BNDES) in Brazil has announced that it has approved a BRL1.25 billion (US$322.7 million) loan to Fraport Brasil - Porto Alegre for the expansion,...
Read more -
December 20, 2018
Zurich Airport and IG4 Capital bid to take over Brazilian airport
A consortium formed by Zurich Airport and the Brazilian company IG4 Capital has submitted a proposal to take control of Viracopos International Airport, located in Campinas, São Paulo. The curr...
Read more -
December 17, 2018
Brazilian municipality passes bill governing street lighting concession
The government of Porto Alegre has passed a legislative bill authorising the Executive to contract a private partner for a street lighting project in the city, located in Rio Grande do Sul, southern B...
Read more -
December 11, 2018
Brazil PPI publishes English version of airport auctions
The National Civil Aviation Agency (ANAC) has published the English version of the Auction Notice No. 01/2018, related to the 5th Round of airport concessions, comprising the three airport blocks...
Read more
