The State of São Paulo installed, on February 8, 2013,
the public procurement proceeding for the public-private
partnership (PPP) involving Line 6 of the São Paulo
Metropolitan Region Subway System.
The PPP, installed in the format of a sponsored concession,
involves the rendering of passenger transportation public services
by the private partner, which shall be responsible for the
construction work and installation of the subway system, supply of
the rolling stock, followed by the operation, maintenance and
future expansion of Line 6. The PPP contract will have a 25-year
total term, including a construction period of no more
than six years.
Line 6 will have, initially, 15.3 kilometers, limited to one
stretch called Brasilândia - São Joaquim. However, the
PPP public notice provides for a possible expansion of Line 6 with
the addition of a stretch called Brasilândia -
Bandeirantes to its original structure.
The Concessionaire's remuneration shall be comprised of: (i)
the passenger tariff revenue, with the tariff already set at R$
1.60 per passenger (base date of 02/01/2013); (ii) the public
counter-performance, in the maximum annual amount of R$
565,293,970.80 (base date of 02/01/2013), discounted according to
the percentage of discount offered by the winner bidder.
The winner will be the bidder that offers the highest percentage
of discount to be subtracted from the public
counter-performance.
The business plan to be submitted by the bidders shall be
accompanied by a statement from a financial institution, domestic
or foreign, attesting to the economic and financial feasibility of
its implementation. The statement shall be accompanied by evidence
of experience of the financial institution on the financial
structuring of projects, especially in the infrastructure sector,
involving at least 1 billion reais.
The economic proposal and business plan of foreign bidders shall
be submitted directly in Portuguese, and their qualification
documents shall be notarized, certified by the Brazilian Consulate
of their country of origin and translated into Portuguese by a
sworn translator.
The submission of proposals is scheduled for May 9, 2013, at 9:00
am, during a public session to be held in the Auditorium of
Edifício Cidade I, located at Rua Boa Vista, 170 -
Mezzanine, in São Paulo.
The bid documents can be downloaded on the website of the State
Department of Metropolitan Transportation (http://www.stm.sp.gov.br/index.php/edital-linha-6).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
