SP, consortiums ink metro line 4 P1 contracts

Sao Paulo state's government and two consortia have inked contracts for the 12.8km first phase of Sao Paulo city metro company CMSP's US$1.26bn line 4, the state government reported. Last month, the CMSP awarded Consortium Via Amarela (CBPO, OAS, Alstom and Queiroz Galvao) the contracts to build both stretches of the first phase, with bids of 868mn reais and 730mn reais; while consortium Camargo Correa-Andrade Gutierrez-Siemens won the contract to build the workshop and maintenance yards with a bid of 219mn reais. Construction is slated to begin in January. The first phase entails five stations and the purchase of 16 trains and is due 2006, while a second phase will add another six stations and eight trains. Once fully operational by end-2007, line 4 will carry some 890,000 passengers/day. Last year, the government of Sao Paulo state signed a US$209mn loan contract with the World Bank to help finance line 4, which will also receive funding from the Japan Bank for International Cooperation, the state government and the private sector. Earlier this year, local bank Unibanco won a contract for the feasibility studies of putting line 4 out to concession. The study should be ready by year-end or early 2004. The bank will also help draft and sell bidding rules for the 30-year concession should this scheme be selected, and will receive 1% of the concession's estimated US$500mn-value, as payment.