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.