PPP bidding invitation of Curitiba Metro is suspended

Tribunal de Contas do Estado do Paraná (The Court of Accounts of the State of Paraná) (TEC-PR) determined on Friday for the municipality of Curitiba (PR) the precautionary suspension of the bidding for the City Metro. The submission of proposals was scheduled for today, but the TCE pointed out irregularities in the notice with invitation to bid.

Companies like CCR have studied the project, which has budgeted construction costs at $ 2,096,716,530.00, while groups like the Triunfo Participações e Investimentos (TPI) evaluate closely the dispute. Behind the scenes, however, the Curitiba subway has attracted real interest of few infrastructure groups. Companies have argued that the return on investment isn’t that attractive considering the risks involved, mainly the lifting of the costs of work-that would be being underestimated.

The suspension of the TCE is interpreted by the companies as an opportunity for the city to improve the modeling of the PPP. Two points are suggested by private initiative: increased tariff (foreseen in $ 1.09 in the bidding invitation) and improvement in the conditions of the guarantee of investment. According to text released by the Office of communication of the TCE-PR, the technicians showed lack of definition of the objective of the public-private partnership (PPP) in degree of detail enough, expedition of the guidelines for the environmental licensing of the enterprise for organ without legal competence and absence of source-destination search.

In the arguments used to request the measure, the Adviser noted that in the case of a procurement of around $ 8.119,200,180.00, the contracting Government administration should, with more reason, delimit with precision what it plans to hire. Because, according to the bidding invitation, it is estimated that the contract will be extended for 35 years and with pecuniary consideration of public partner .

According to the Agency, international competition remains suspended until further analysis of the TCE. It was given a regimental deadline of 15 days for the cited to present a contradictory. In a statement, the City Council confirms that the bidding process was postponed because of the decision. The alleged questions had already been answered in the cautionary measure, on August 18th . For the city the gist is that the bidding of the Metro has legal certainty and transparency, says the note.