The auction of public construction contracts for the North Axis of the Interurban Train (TIC), which will connect the city of So Paulo to Campinas were opened on March 31 2023. The State of So Paulo’s government released the public notice to any organizations interested in taking part in this international auction. The full auction notice documents can be seen here.
With financing from ordinary capital resources from the Inter-American Development Bank and the Global Infrastructure Facility, the construction of the railway line is one of the largest public-private partnership projects in Brazil.
The Inter-American Development Bank, through its public-private partnership Single Window, and the São Paulo State Government have worked together since 2019 to structure the project, one of the State’s main mobility initiatives.
With estimated investments of $2.5 billion, the project is part of the São Paulo Investment Partnership Program. It is expected to attract more than R$12.7 billion in private investments in the coming years, in addition to generating social and economic benefits for the population estimated at R$3.18 billion.
The project aims to serve the greater metropolis of São Paulo, which has nearly 34 million inhabitants. About 65,000 daily passengers are expected to use the new São Paulo-Campinas express service through 2055 and about 650,000 daily passengers are expected to use local services.
Rafael Benini, secretary of investment partnerships of the State of São Paulo said,
“This is an ambitious project, but it is necessary and very well structured. Partnership with the IDB has been fundamental to get this far.”
For Gaston Astesiano, the head of the IDB’s PPP Single Window, the TIC is a project of great impact for improving the lives of São Paulo residents. He said,
“Private participation will be fundamental for this project’s financial, environmental and social sustainability – aspects that we have analyzed in detail since the beginning of structuring this PPP.”
The IDB’s representative in Brazil, Morgan Doyle, welcomed this stage of the project.
“PPPs are an important instrument, not only for making projects viable and sharing risks, but also a powerful investment-management tool. The São Paulo State Government is a pioneer in this approach, and it is an honor to be able to support them in an initiative that will generate so many benefits.”
The presentation of proposals is scheduled for November 28 2023 at B3, the São Paulo Stock Exchange.
The Inter-American Development Bank will continue to support the State’s next steps in this project that will positively impact the population and the economy.
About the Global Infrastructure Facility
The Global Infrastructure Facility, initiated by the G20 in 2014, is a global collaboration platform that brings to market sustainable, quality, and bankable infrastructure projects; and helps to expand the market for private infrastructure finance across EMDEs.
The facility provides funding and hands-on technical support and enables collective action among a wide range of partners–including donors, multilaterals, governments, with inputs from private sector investors and financiers to find solutions to sustainable infrastructure financing challenges.
About the Inter-American Development Bank
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the bank is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean.
The bank also conducts cutting-edge research projects and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.