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Brazil seeks UK input for $20bn of construction

29 Jan 13 A trade delegation from the government of Sao Paulo is in the UK to present eight public-private partnership (PPP) infrastructure projects worth US$20bn to British potential contractors.

The PPP projects for Sao Paulo include the construction and maintenance of three subway lines, a monorail, an intercity train network, three prison complexes and four new hospitals.

British trade and investment minister Lord Green said: “As Sao Paulo prepares to host the World Cup in 2014, there are some great infrastructure projects ready to get under way in Brazil. Our construction sector is one of the world’s biggest and best, and UK companies are ideally placed to capitalise on these excellent opportunities.

“For the London Olympics 2012 we showed the world what we can do. We have already witnessed the incredible regeneration of east London, with world class facilities and a new urban park created. We are now working hard, alongside firms around the country to follow up the contacts, networks, announcements and momentum created by the Games.”

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The deputy governor of Sao Paulo, Guilherme Afif Domingos said: “The State of Sao Paulo today is alone the 18th largest economy in the world, accounting for 33% of Brazil's GDP and it has a credibility track-record to attract investments in infrastructure through partnerships with the private sector. Moreover, the European crisis opens a window of opportunity to awaken the healthy appetite of foreign investors in search of good business options in emerging markets.”

An event held yesterday involved a round-table discussion with UK infrastructure companies and banks. There was also be an evening reception where Lord Green signed a memorandum of understanding between UK Trade & Investment (UKTI) and Invest Sao Paulo.

The PPP projects include:

  • Intercity train network serving Sao Paulo with 416km of rail network for the Metropolitan Transport Secretariat involving an investment of BRL18.5bn (£5.8bn. Bidding opens November 2013 with the contract due to start in April 2014.
  • Metro Line 6 – Orange for the Metropolitan Transport Secretariat, involving an investment of BRL7.8bn (£2.4bn). Bidding opens this month with the contract to start in June.
  • Metro line 20 – Pink for the Metropolitan Transport Secretariat, involving investment of BRL 7.5bn (£2.3bn). Bidding opens in October and the contract starts in March 2014.
  • Metro Line 18 – Bronze (monorail) for the Metropolitan Transport Secretariat, involving investment of BRL3.01bn. Bidding opens in March and the contract starts in July.
  • The construction, operation and maintenance of three male prison complexes with a total of 10,500 spaces, divided into 7,200 in a closed prison complex and 3,500 spaces in a semi-open prison complex. The investment is BRL750m (£234m). Bidding opens in April 2013 and the contract is from September 2013.  
  • The construction, maintenance and operation of support services in four new state hospitals. Investments total BRL600m (£187m). Bidding opens in May and the contract work is from July.
  • Plans for the implementation of digital interactive equipment in all schools in the Sao Paulo state, totalling 3.3 million students and 163,000 teachers. Bidding opens in March and the contract is from September 2013 and involves an investment of BRL1.5bn (£4.7m).
  • The implementation and logistical operation of the removal, deposit, protection and transportation of vehicles, as well as the modernisation of activities deriving from state vehicle inspections. It involves investments of BRL1.1bn (£343m). Bidding opens in June and the contract is from November 2013.

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