Brazil’s Bahia state signs US$1.26bn bridge contract with Chinese investors

The government of Brazil’s Bahia state signed a PPP contract with a Chinese consortium for the construction, operation and maintenance of the Salvador-Itaparica bridge. 

The project is worth 6.9bn reais (US$1.26bn) and counts on 5.4bn reais in investment from the consortium, which is formed by China Communications Construction Company (CCCC), CCCC South America Regional Company (CCC CSA) and China Railway 20 Bureau Group Corporation (CR20).

The state government is investing 1.5bn reais in the 12.4km bridge. 

The consortium now has one year to obtain all necessary licenses and start building the bridge, with construction expected to take four years. 

"It is the biggest investment in recent years of a Chinese group in Brazil. We are very proud to have reached this moment to sign the contract with a group from a country that invests a lot in research and technology," said Rui Costa, governor of the northeastern state.

After the conclusion of the construction, the consortium will be responsible during 30 years for the bridge’s administration and maintenance. 

The bridge is expected to see a daily flow of 28,000 vehicles and benefit 4.4mn people in the metropolitan region of state capital Salvador. 

THE CHINESE CONNECTION 

Governor Costa belongs to the leftist Workers party and has strong connections with investors from China. 

Last year, the state signed a PPP contract with Consortium Skyrail Bahia, controlled by China’s Build Your Dreams (BYD), for the construction and operation of a 1.5bn-real light rail service in Salvador. 

The 20km line will have 22 stations and capacity to transport 150,000 passengers per day.