Brazil-Argentina group signs USD 1.8bn São Paulo monorail contract

A Brazilian-Argentine consortium, ABC Integrado, won a tender to build, operate and maintain a 4.2bn-real (USD 1.84bn) monorail in the city of São Paulo, known as metro line 18. The consortium is made up of local engineering group Primav, local construction companies Encalso and Cowan, and Argentina’s Benito Roggio Transportes.
The 25-year concession calls for building a 15 km monorail, with 13 stations from São Paulo city to the neighboring ABC region. Construction should be completed in 2018.
The group requested an annual concession payment of 316mn reais (USD 139 mln), or 0.27% below the 317mn-real ceiling price called for in the tender documents. In return, it is investing 1.9bn reais (USD 834 mln) in the project. The remaining 2.3bn reais (USD 1 bn) will come from public coffers.

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