Metro looks into PPP for new tracks

Together with its export activities, Metro plans to invest R$ 27 billion between 2011 and 2014, to meet the users’ demand for the subway services in São Paulo. Apart from expanding the network, the idea is also to modernize the current system with different courses of action. The first of these, for which funds of R$ 3.6 billion have been set aside, is the acquisition and revamping of trains. The latest deal to be finalized was that with Spanish company CAF, for the supply of 26 trains at a cost of about R$ 415 million. Metro also wants to implement a CBTC communication system on all tracks, which reduces the interval between the trains by up to 20% (in three tracks, the implementation of this system has already cost a total of R$ 712 million).

CEO Sérgio Avelleda has revealed that Metro plans to pass the operation of two tracks to private enterprise, these being Line 2 (Green Line) and also the long expected Line 17 (Gold Line) which shall have a station close to Congonhas Airport. These two tracks shall operate using a monorail system, this being a train which runs on tires and is cheaper to implement.

According to Mr. Avelleda, the model would be that of a public-private partnership (PPP) and would be similar to that in use on Line 4 (Yellow Line), the only line which is not operated by Metro. The responsible company in this case is ViaQuatro, a company controlled by the CCR Group, whose main shareholders include Camargo Corrêa, Andrade Gutierrez and Soares Penido. These contractors are also major partners of Metro. In Line 5 (Lilac Line) alone, there is a total of R$ 4 billion in contracts with Camargo Corrêa, Andrade Gutierrez and other contractors. The winners were the target of suspicion of an illicit agreement when they made the proposals. Even so, Metro continued with the hiring process. There was no irrefutable proof, so the contracts were maintained, says Mr. Avelleda.