Brazil : Sao Paulo Regional Rail

Challenge

The road corridor connecting Sao Paulo to Campinas is one of the busiest areas in the Sao Paulo metropolitan region, serving over seven municipalities and a population of more than 20 million, currently served mostly by road infrastructure with limited expansion capacity and congestion issues.

Solution

Based on earlier PRA and PDA activities, the GIF is working with the IDB to advance the feasibility analysis and structuring of the proposed upgrade of the Sao Paulo – Campinas rail corridor including a return of passenger services to a portion of the line left largely unused for the last decades.

The work will identify a private partner to invest and operate the Intercity Train between Sao Paulo and Campinas through a PPP scheme. It entails full feasibility studies, structuring and procurement support of an optimized solution for the service. Studies included detailed financial and business models, risk assessment, definition of financing sources, basic design engineering (alignment, earthworks, tracks, stations, signaling, energy, auxiliary systems, and rolling stock), environmental and social assessment, licenses, institutional and legal framework of collaboration with the municipalities involved in the project including financing responsibilities, operational/legal agreements with ANTT (Transport Authority) for shared-use of tracks and infrastructure financing responsibilities. It will also include elaborating the biding documents and contracts, road show to promote the project, and support during the procurement process.

Expected Impact

The project will incentivize a cleaner and more efficient transportation modality while promoting emission reduction. This should be the first of a kind in the country with high replication potential.