São Paulo presents details of US$2.5bn light rail PPP contract

São Paulo state unveiled details of the 14.3bn-real (US$2.5bn) PPP contract for three urban light rail lines operated by public company CPTM.

The 25-year contract for lines No. 11, 12 and 13 will be offered in a single package on March 28.

"The contract will bring operational, structural and technological improvements for passengers, including the requalification of the three lines and the expansion of the rail network. Eight new stations will be built, and 24 existing stations will be renovated, in addition to the elimination of all at-grade crossings, which will be replaced by pedestrian bridges, overpasses or underpasses, ensuring greater safety for passengers and better flow in urban traffic," a press release said.

Potential bidders include a consortium formed by China's CRRC and Brazilian firm Comporte, plus Brazilian group CCR in a consortium with French firm Transdev, and local investment company Perfin, which seeks to make its debut in the sector, a person close to the process told BNamericas on condition of anonymity.

Currently, the three lines extend 124km. Under the contract, the lines will link to the areas in the city's east and localities in the greater metropolitan area.

Line No. 11-coral will be extended by 4km, reaching Cezar de Souza and Barra Funda stations. Four stations will be added, 14 renovated and three rebuilt.

Line No. 12-sapphire will be extended by 2.7km, reaching Suzano. Two stations will be added and links to line No. 13-jade and line No. 2-green will be built. One station will be rebuilt and 12 modernized.

Six stations will be added to line No. 13-jade, while three will be modernized. A total of 15.6km of tracks will be constructed.

CRRC

Meanwhile, rolling stock supplier CRRC and Comporte are mulling acquiring an area previously owned by engineering firm Iesa to build a factory in Araraquara city, São Paulo state, a spokesperson told BNamericas.

State and city officials and representatives of the consortium discussed the plan during a recent meeting, according to a press release.

"The consortium... is seeking strategic partnerships for the establishment of the unit in Brazilian territory, and Araraquara emerges as a strong candidate due to its infrastructure and privileged location," the release said.