Invitation to bid for the construction of the North Axis of the Intercity Train receives proposals
IDB supported the State Government of São Paulo in structuring and modeling the PPP.
The Inter-American Development Bank (IDB), through its PPP Single Window, and the São Paulo State Government have been working together since 2019 to structure one of the State's main mobility projects: the railway line that will connect the capital of São Paulo to Campinas, the North Axis of the Intercity Train (TIC).
With resources from the Bank's ordinary capital and the Global Infrastructure Facility (GIF), the line's construction is one of Brazil's most significant PPP projects. On March 31st, the Government of the State of São Paulo launched a public notice to companies interested in participating in the international auction for the sponsored concession to construct the line.
With estimated investments of about US$ 2.5 billion, the project is part of the São Paulo Investment Partnership Program (PPI-SP). It should attract more than R$ 12.7 billion in private investments over the years and generate social and economic benefits to the population estimated at R$ 3.18 billion.
The project aims to serve the macro metropolis of São Paulo, with almost 34 million inhabitants and about 65 thousand daily passengers projected for the new express service until 2055 between the cities of São Paulo-Campinas, and about 650 thousand daily passengers for the paratransit services. "It is an ambitious project, but necessary and very well structured. The IDB partnership was fundamental to get us this far," said Rafael Benini, Secretary of Investment Partnerships of the State of São Paulo.
For the head of the IDB's Single Window of PPPs, Gastón Astesiano, the TIC is a project of significant impact for improving the lives of São Paulo residents. "And private participation will be fundamental for its financial, environmental, and social sustainability, aspects that we have analyzed in detail since the beginning of the structuring of this PPP," he said.
The IDB representative in Brazil, Morgan Doyle, celebrates this project stage. "The PPPs are an important instrument not only to make projects viable and share risks but also a powerful investment management tool. The Government of the State of São Paulo is a pioneer in this approach, and it is an honor to be able to support them in this initiative that will generate so many benefits," he said.
The date for the presentation of proposals is scheduled for November 28th, in a session to be held at B3, the São Paulo Stock Exchange. The IDB will continue to support the State's next steps in this project, which will positively impact the population and the economy of the State of São Paulo.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.
About the GIF
The Global Infrastructure Facility (GIF), 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 GIF 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.