Brazil seeks international bidders for $2.5bn rail PPP

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The State of São Paulo has issued a public notice to potential participants in its international auction for construction of the North Axis of the Interurban Train (TIC) public private partnership. 

With financing from ordinary capital resources from the Inter-American Development Bank (IDB) and the Global Infrastructure Facility (GIF), the construction of the São Paulo- Campinas railway line is one of the largest public-private partnership (PPP) projects in Brazil. The IDB, through its PPP Single Window, and the São Paulo State Government have worked together since 2019 to structure the project, one of the state’s main mobility initiatives.

With estimated investments of $2.5bn, the project is part of the São Paulo Investment Partnership Program (PPI-SP) and aims to serve the greater metropolis of São Paulo, which has nearly 34 million inhabitants. About 65,000 daily passengers are expected to use the new São Paulo-Campinas express service and about 650,000 daily passengers are expected to use local services.

Rafael Benini, secretary of investment partnerships of the State of São Paulo, commented: “This is an ambitious project, but it is necessary and very well structured. Partnership with the IDB has been fundamental to get this far.”

Gaston Astesiano, the head of the IDB’s PPP Single Window, added. “Private participation will be fundamental for this project’s financial, environmental and social sustainability – aspects that we have analysed in detail since the beginning of structuring this PPP.”

The IDB’s representative in Brazil, Morgan Doyle, welcomed this stage of the project. “PPPs are an important instrument, not only for making projects viable and sharing risks, but also a powerful investment-management tool. The São Paulo State Government is a pioneer in this approach, and it is an honor to be able to support them in an initiative that will generate so many benefits,” said Doyle.

The presentation of proposals is scheduled for 28 November at B3, the São Paulo Stock Exchange. Details for interested partners can be found at São Paulo’s Digital Platform of Partnerships.