Global Opportunities

São Paulo State is looking for foreign companies to operate the concession of metro lines

The São Paulo State opened on March 30th a new bid for the operation of two metro lines in the capital: line No. 5 and line No. 17.

Panoramic view on São Paulo.

The bid will take place at Bovespa (São Paulo stock exchange) on July 4th, with the minimum bid value of BRL 189.6 million (around USD 60.38), and an expectation of further investments worth BRL 3 billion during the concession period.

The contract, valid for 20 years, is estimated at BRL 10.8 billion (around USD 3.44 billion), corresponding to the sum of remuneration revenue and non-operating revenues, such as commercial exploitation of advertising spaces in stations.

The private partner's estimated investment is of BRL 88 million (USD 28.02 million), which will be used in the infrastructure of the lines and other improvements, aimed at meeting the quality performance indicators that are required from the operator.

In order to find foreign companies interested in bidding for the concession of the two lines, the São Paulo State government organized a delegation to Europe and Asia, leaded by the State Secretary for Metropolitan Transportation, Clodoaldo Pelissioni. In Brussels on April 18th, Mr. Pelissioni met with European investment funds, financial institutions and infrastructure operators.

The official wanted to attract at least four or five infrastructure operators to the bidding table, and eventually award the contract to a top quality firm that offers a high canon payment, according to an interview of Mr. Pelissioni to BN Americas.

The Metro Lines

More than 1mn passengers a day are expected to use the two lines (850’000 on line No. 5, and 200’000 for monorail line No. 17). The two were combined due to the smaller demand on the latter.

Under-construction, line No. 5 will have 20.1 km of extension, two train yards and 17 stations. Also under construction, line No. 17 will have 7.7km of extension, one train yard and 8 stations.

According to Mr. Pelissioni, the eventual concession holder will be remunerated BRL 1.63 per passenger transported.

Further Information

For further information, please check the official webpages bellow. Companies may also contact S-GE and its Swiss Business Hub in Brazil to receive support and business advisory.

 

Metro Website – Bidding Page

Secretary of Metropolitan Transportation Website

São Paulo State Institutional Website (article about concession of lines 5 and 17)

 

 

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