BRAZILIAN infrastructure and transport concession company CCR has reached an agreement with the government of São Paulo to amend its concession for metro lines 5/Lilac and 17/Gold, under which it will assume responsibility for the preparation of studies and the execution of future investments to expand the lines.

Both lines are operated by CCR subsidiary ViaMobilidade.

The 4km extension of Line 5/Lilac, which currently runs between Chácara Klabin and Capão Redondo stations, would take the line to the Jardim Ângela neighbourhood in the southwest of the city adding two new stations and a bus terminal.

The planned stations include the elevated Comendador Sant’Anna station and Jardim Ângela station, close to the M'Boi Mirim hospital, which will be connected to the existing SPTrans bus terminal and a planned new bus terminal.

The government estimates the extension will benefit 130,000 residents in the region, but would require land expropriations and the rerouting of the Capão Redondo stream to expand the Carlos Caldeira Filho avenue.

The 7km Line 17/Gold monorail has been under construction since 2012 and will connect Congonhas Airport with lines 5/Lilac and 9/Emerald, with eight station.

Work on the project has been beset by delays and legal disputes. On March 29, the Superior Court of Justice overturned a decision by the São Paulo Court of Justice that suspended the contract for the supply of trains and equipment, after the losing consortium challenged the tender.

CCR says the conditions of the new concession agreement will be agreed with the government, including the economic and financial rebalancing of the concession.

The announcement came days after CCR signed an agreement with the São Paulo government to receive more than Reais 1bn ($US 179.5m) in compensation following project delays on lines that it was due to operate.

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