The 30-year loan is equivalent to 60% of the Reais 33.1 billion
required to build the Rio de Janeiro - São Paulo - Campinas line, which
is due to open in time for the 2016 Rio Olympic Games.

Doubts emerged over construction risks and a potential cost adjustment
after a report by the Federal Court of Audit earlier this year
suggested geological studies are inadequate, and that the government's
own estimates of environmental costs were unreliable.

Meanwhile federal treasury undersecretary Mr Marcus Aucelio has
indicated the government may be willing to offer the winning
concessionaire an annual operating subsidy of up to Reais 5 billion, if
revenues fail to meet projected levels. The winner of the concession to
build and operate the line will be selected on the basis of the bid
which offers the lowest economy-class fare between Rio and São Paulo.

Brazil's National Land Transport Agency (ANTT) is expected to announce the winning bidder on December 16.