Brazil preparing tender for Norte-Sul railway concession

Brazil preparing tender for Norte-Sul railway concession :The coordinators of Brazil’s investment partnership program are planning to combine two of the country’s Norte-Sul railway stretches into a single concession spanning some 1,537km.

The plan involves combining an 855km stretch between the cities of Palmas (Tocantins state) and Anápolis (Goiás state) and a 682km stretch between the cities of Ouro Verde (Goiás) and Estrela D’Oeste (São Paulo state), local paper Valor Econômico reported.

While the former has already been built, the latter is still under construction by the Integral-SPAVias-Trail-Alta consortium and, according to the report, work on it has reached the 90% completion mark.

Although the details of the planned concession are still be worked on, the winning bidder will be the one that offers the highest canon payment and the concession period could be as long as 35 years, the report said.

The investment partnership program’s executive secretary, Moreira Franco, is due meet with interim president Michel Temer within the next few weeks to obtain final approval. “It is a very viable alternative,” Franco was quoted as saying.

The overall construction of the Norte-Sul railroad is being carried out by federal rail company Valec in seven segments. It will extend a total of 4,156km, passing through 10 states, from Pará (in the north) to Rio Grande do Sul (south).

During a meeting with transport minister Mauricio Quintella last week, Franco discussed concession model changes for upcoming concession tenders. Among the key modifications to be made includes extending to 90 days from 30 days the time from when bidding documents are published to when offers must be submitted.

Complaints about the previous 30-day period had been received. Interested bidders had complained that it was too short a time to review necessary documents and prepare bids, the paper said.


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