The High Speed Train project between Campinas, São Paulo and Rio de Janeiro, which is already the most expensive project in the country’s history, could have an even greater cost than that estimated by the Government, which was R$ 33.1 billion, or US$ 19.95 billion. According to a group of São Paulo subcontractors, the cost of the HST shall be no less than R$ 53 billion (US$ 31.95 billion), which is a leap of 60% when compared with the value as approved by the Federal Audit Court for the bidding for this project.
The calculations have been made by the São Paulo Association of Businesspeople of Public Works (Associação Paulista de Empresários de Obras Públicas – Apeop) and, according to the President of this institution, Luciano Amadio, were handed to the BNDES at the end of February.
The calculations made by this group, which is also getting together to participate in the bidding process, the civil work alone shall incur costs of R$ 45 billion (US$ 27.12 billion). “We envisage a total workforce of between 25 thousand and 27 thousand collaborators, as well as seven work sites and 1.6 thousand work fronts, just for the foundations to be used for the track”, said Mr. Amadio.
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The remaining R$ 7 billion (US$ 4.22 billion) or R$ 8 billion (US$ 4.82 billion) of the total as estimated by the Apeop are for trains and infrastructure equipment so that the HST may operate.
Meanwhile, the Government is working with a total value of R$ 33.1 billion (US$ 19.95 billion) for the project, of which 70% shall be for expenses incurred by civil work. So far, this is the maximum value set for the auction, which is scheduled for the end of April.
It is also worth stressing that at least one consortium from Korea, has already shown interest in participating in the bidding process with these price levels.
In the opinion of Mr. Amadio, apart from the financing of the BNDES and participation of pension funds, the Government shall have to invest more than they had originally planned, following a standard used in other high speed trains in operation throughout the world, which is that of greater subsidies.
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