Brazil seeking interested parties to build US$1bn underwater tunnel

Brazil’s ports and airports ministry, Santos Port Authority (SPA) and São Paulo state will organize a market sounding to gauge the interest of private sector participants in building a 5.96 billion-real (US$1.06bn) underwater tunnel between the coastal cities of Santos and Guarujá.

"Market sounding is a common practice in the financial sector and is used to consult investors on the feasibility of new issues or proposals. The target participants of the action are investors, financial institutions, stakeholders and other interested parties," the ports and airports ministry said in a statement.

"The format of the meetings will be one-on-one, which means that the private investor will meet with technicians from the ministry, SPA, the government of São Paulo, the presidential chief of staff and the national waterway transport agency (Antaq) separately. At the meeting, a confidentiality form will be signed so that the participant has the guarantee of security and protection of the information exchanged," it added.

Interested parties should register here through September 27.

The market sounding sessions will take place on October 3 and 4.

The 870m tunnel, the first of its kind in Latin America, should be built at a depth of 21m, most likely under the PPP modality. An auction is planned for July 2025. The winner will be responsible for construction, operation and maintenance.

Expected benefits include reduced travel times and opportunities for terminal operators to install facilities in Guarujá.