HST managing company is formally established

Etav, the public company created to manage the bullet train project has finally been established with the nomination of a CEO, address and clear purpose: recover the 5-year delay and perform the public announcement of the project definitely in 2013. The company plans, anticipated to GLOBO by the future CEO of the state company, Bernardo Figueiredo, include the conduction of concession auctions — one to choose the train technology operator and other to choose the consortium that will be in charge of the de infrastructure works — virtually at the same time, something that was unthinkable to this time.

The new company, which will be a partner of the bullet train project, budgeted in US$ 18 billion, may increase its shareholding interest above the US$ 1.7 billion initially estimated, in order to ensure the concretization of the enterprise, which was a campaign promise of the President Dilma Rousseff.

— Etav will make things happen. It could be a minor, or even major, partner, in case that there are not many companies interested, which, in my opinion, should not occur — said Figueiredo.

The executive manager came from ANTT, regulating agency

He is just completing the quarantine period required after his leave from ANTT (National Agency for Land Transportation) (ANTT), where he was already responsible for HST (High-Speed Train).

According to Figueiredo, which assumes his position this week, Etav is the assurance that the bullet train project is not subject to private interests. This means that it will be able to make the enterprise feasible, even considering that no other financing parties demonstrate interest as occurred in the two previous auctions occurred since 2009. In principle, Etav will invest US$ 1.2 billion related to expropriations plus US$ 500 million for environmental licensing.

— All the actions will depend on the government decision on how to proceed with the project. Etav has more a leading role than a supporting one — he said.

The bid modeling is already decided, but the operation details to accelerate the project will be discussed from this week on by the new company staff. The first phase, amounting to US$ 5 billion, will define the consortium in charge of the technology operation and its transfer to the state company. By its turn, the second auction will choose the group of companies in charge of the infrastructure works, which should cost US$ 12.5 billion. Both phases will rely on a financing of 70% of the enterprise by BNDES.

As the order is to recovering the time lost, Etav may conduct the executive engineering project required for the bidding process while the auctions are being prepared. Thus, work sites can be installed still in 2013, according to Figueiredo.

If Etav had not been established, there should be an interval of at least one year between the two auctions to prepare the executive project, which means that works would be started only by 2014, after the second auction. As there is no more time available to conduct the first phase this year, as admitted by Figueiredo, the second auction could only occur from the next year, and the works would start some months later. The technology companies want at least six months from the notice to bid publication and the proposal delivery date, which makes the conduction of the auction unfeasible this year.

— We can anticipate everything but technology — he said.

The decision of shortening the period between the two auctions satisfies the private entrepreneurs, which were afraid about the fact that political interferences or changes of direction in the midway could pose risks for the conduction of the second bid.

In the next years, Etav should strengthen itself with income sources such as licensing of the technology (which will be transferred by the bullet train operation consortium) and exploration of the real estate assets in the surroundings of the train track. As a partner of the project, it is entitled to earn all of these revenues. The state company could also increase its business portfolio for managing other high-speed, and even medium-speed, train projects. The allowance for the new state company this year amounts to US$ 40 million and it will initially rely on a staff comprising 30 people.