SP approves Law for the Gold Line budget

The São Paulo governor, Alberto Goldman, approved on Saturday (26) the law 14.163 which authorizes the state government to perform credit operations in the amount of R$ 1.33 billion for investments in the construction of Line 17 – Gold of Metro and in urbanization works around the Cícero Pompeu de Toledo, Morumbi, Stadium, in the South Region of São Paulo.

The approval of the law by the São Paulo House of Legislators (Assembleia Legislativa) and its sanction by the governor is part of the process which precedes the search for creditors and the hiring of the loan, according to the governor’s assistants. According to Palácio dos Bandeirantes, the approval of the law 12 days after FIFA (International Federation of Association Football) discarded Morumbi as Stadium for the 2014 World Cup is a demonstration that the decision did not change the plans of the state government regarding the investments in the Metro and in the stadium. The Metro Gold Line will connect the Congonhas Airport, in the South Region of São Paulo, to the Morumbi Region.

The law 14.163 also foresees R$ 233.7 million for investment in the Teatro de Dança de São Paulo and US$  1.14 billion in the North section of the Mário Covas Ring road.
The law authorizes the state government to perform credit operations with international institutions, multi-lateral and bilateral credit bodies, among them, Banco Nacional de Desenvolvimento Econômico e Social, Caixa Econômica Federal, Inter-American Development Bank, IDB, International Bank for Reconstruction and Development (IBRD), Japan Bank for Internacional Cooperation (Jbic) and Japan Internacional Cooperation Agency (Jica).

The law establishes that the external credit operations shall be ensured by the Union and that the state undertakes to offer rights, credits and own income to the Union as counter-guarantee.

Fonte: G1 SP