Tender details announced for $1.5 billion Sao Paulo's metro line 18 PPP
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The State of São Paulo, through the Department of Metropolitan Transport (STM), announced last week the structure of the PPP contract of São Paulo's metro Line 18 (Bronze) which will use monorail technology. The PPP contract will include the construction, operation and maintenance of civil works and systems. The necessary rolling stock will be also provided and maintained by the concessionaire.
The future concessionaire will be responsible for 12 stations on Line 18 (with span of 14,355 km) and the maintenance facilities.
The length of the contract will be 25 years, 4 years for the implementation of the project and 21 years of operation. The government will fund 50 % of the investment (around US$780 million).
The structuring of the PPP project was carried in collaboration with the private sector, via Procedure of Expression of Interest (PMI). Four companies delivered the feasibility studies requested by the State:
- Brasell Gestão Empresarial Ltda.;
- CMT Consórcio Metropolitanos de Transportes;
- Invepar Investimentos e Participações em Infraestrutura S/A and Construtora Queiroz Galvão S/A-Bombardier Transportation Brasil Ltda.; and
- Odebrecht Transport Participações S/A.
Only part of the studies received were used for the final structuring of the contract: 34.38% from Invepar - Construtora Queiroz Galvão - Bombardier's study and 46.38 % from Odebrecht's study. The studies submitted by other bidders were not used.
The public consultation will begin in April and the bidding documents will be published in July 2013, according to the schedule published by the State.
Remember that Sao Paulo is tendering soon two other metro lines under PPP:
Source: Government of São Paulo - Presentation
