July 06, 2017

São Paulo extends deadline for operating concession bids

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The first section of metro Line 5 is already open. The first section of metro Line 5 is already open.

THE government of São Paulo has postponed bidding for the public-private partnership (PPP) concession to operate lines 5 and 17 of the Brazilian city’s metro network from July 4 until September 28.


São Paulo’s governor Mr Geraldo Alckmin says he wants to give bidders more time to prepare their proposals. The terms of concessions have not been altered, and the minimum bid remains Reais 189.6m ($US 60.2m) and the government expects Reais 3bn of investments during the 20-year concession term. The estimated total value of the contract is Reais 10.8bn, which equates to the total value of fare income and non-operational revenue.

The government expects that the private sector will invest Reais 88m in improvements to infrastructure in order to meet the concessionaire’s performance targets.

Line 5 is in operation between Capão Redondo and Adolfo Pinheiro, and an extension is currently under construction between Adolfo Pinheiro and Chácara Klabin which will take the length of the line to 20.1km with 17 stations. Once completed in 2018, the extended line is expected to serve 200,000 passengers per day and will include interchanges with metro lines 1, 2 and 17, and suburban Line 9.

Line 17 is a 7.7km monorail, which is currently under construction between Congonhas Airport and Morumbi, and will serve eight elevated stations, including interchanges with Line 5 and suburban Line 9. Line 17 is expected to serve 185,000 passengers per day when it opens in July 2019.

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