From valorinternational · · 1m 10s
São Paulo Renegotiates Rail and Highway Concessions
São Paulo state government may restructure urban rail and highway contracts through competitive bidding.
In brief
São Paulo state government may restructure urban rail and highway contracts through competitive bidding. São Paulo state government plans to renegotiate urban rail and highway concessions with competitive bidding to potentially sell assets to third parties. Originally reported by valorinternational.
São Paulo Government Launches Concession Renegotiation
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São Paulo state government launched a program to renegotiate public-service concession contracts modeled on a federal initiative.
Potential Projects for Renegotiation
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Projects include urban rail Lines 8-Diamante and 9-Esmeralda operated by Motiva, West Rodoanel ring road, Rota das Bandeiras owned by Mubadala, and ViaRondon.
Competitive Bidding Process
The current concession holder will not participate in bidding but will negotiate openly to improve service quality and investment capacity.
Asset Sale Options
Assets could be sold directly or through a new special purpose company to avoid hidden liabilities.
Current Holder Retains Contract
If no other bidder expresses interest, the current concession holder retains the contract.
Structural Changes Only
Less complex changes will follow existing procedures, while structural changes require this renegotiation framework.
In short
São Paulo state government plans to renegotiate urban rail and highway concessions with competitive bidding to potentially sell assets to third parties.
