Brazil’s CMSP restarts US$3.88bn metro PPP with expropriation guarantee

Southeastern Brazil’s São Paulo state transport secretary, through metro company CMSP, has relaunched its 7.8bn-real (US$3.88bn) public-private partnership (PPP) tender to build and operate the city’s metro line 6, according to a state government release.

Originally started on February 8 with a bid submission date of May 9, bidding has restarted due to changes in the tender regarding the expropriation of residents along the metro route.

Previously, the tender stated that the winning contractor would be responsible for expropriations and that the cost would vary between 673mn-740mn reais.

However, due to concerns by interested parties that the cost would surpass the stipulated amount, the state government has now promised to cover any amount above 740mn reais, according to gazette Diário Oficial do Estado do São Paulo.

As such, bidding for the 25-year concession was restarted on Monday (Apr 29), and the new bid submission date is now July 30, the release said.

Also known as the Laranja (orange) line, the subway will run some 15.9km between the Brasilândia and San Joaquin stations, with 15 stations in all. It will connect the universities of FAAP, PUC, and others in the Liberdade neighborhood.

The 25-year concession period encompasses six years to build the line and 19 years for commercial operations.

Once completed, Line 6 is expected to transport nearly 640,000 passengers per day. The passenger fee is set at 1.50 reais.


Source : bnamericas

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