São Paulo state temporarily halts US$720mn train tender

São Paulo state's transport department has suspended a tender to purchase 44 new trains under a contract estimated to involve 3.6bn reais (US$720mn).

The tender was scheduled for March 21 but the government decided to halt the process for an undetermined period to address a request made by the companies interested in bidding, a spokesperson for the state transport department told BNamericas.

The government requires more time to assess requests for additional clarifications from potential participants, added the spokesperson, without providing further details.

"We're in contact with the government of São Paulo state to understand the details behind the decision to postpone the process. I believe that it will be resumed soon, as the trains to be acquired are for use on metro lines that are already in an advanced process of expansion, such as line No. 2," Vicente Abate, president of rail equipment manufacturers’ association Abifer, told BNamericas.  

The trains to be purchased will be used on metro line No. 2 - green, line No. 1 - blue and line No. 3 - red.

The state government is planning to invest 3.6bn reais in acquiring new trains with support financing from state-run development bank BNDES.

The tender will be won by the company that offers the lowest price, with the deadline for the first train to be delivered set at 21 months after the contract is signed.