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ANTT to publish infrastructure tender for construction of Campinas Bullet Train

ANTT, the Brazilian national grounds transport agency announced Tuesday that it will be publishing its infrastructure tender for the construction of the Rio de Janeiro-Sao Paulo-Campinas bullet train. The agency announced it will commence tendering for the US$18.8 billion infrastructure investment today, its spokesman said. 

 

The announcement for the July 14th tender was made by Brazilian president Luiz Inacio Lula da Silva at a ceremony yesterday. Even so, the tender will be officially published in the country’s gazette on July 14th, today, together with additional information on the government agency’s official site, the spokesman added yesterday. 

 

As such, the tender was today published and bid envelopes are expected to be submitted by the 29th of November 2010, with the tender to be subsequently awarded on 6th of December this year as well, ANTT director, Bernardo Figueiredo said.

 

The tender entails the construction of a 511 km railroad, which includes 90.9 km of tunnels and 103 km of bridges and overpasses. It is expected that the bullet train will operate at speeds of about 300 km/h to 350km/hr. Thus, the concession will be given to the bid that provides the lowest passenger fare and requires the least amount of public financing.

 

On the other hand, the Brazilian agency has set the fare for a one way ticket between Rio de Janeiro and Sao Paolo, an economy class ticket, at about 150 reals to 200 reals. The bid has attracted infrastructure giant companies from around the globe with companies from Germany, Spain, France, China, Japan and Italy showing particular keenness for the tender.

 

The mega infrastructure development project is expected to have approximate gross operating revenue of 193 billion reals in the project’s 40 year concession time frame. The Brazilian state owned investment financier, BNDES, will fund about 70% of the investment’s cost.

 

However, the concessions for the major infrastructural development project are still being undertaken before being put out to tender, even though it is pegged at the 40 years time frame.  BNDES, the financier of more than half of the capital, is a Brazilian state owned Development Company that offers funds for projects within the country in addition to its key role in the privation programs undertaken by the Brazilian government; with an annual 2008 funding that topped 90.9 billion reals, representing a 40% growth when compared to the year 2007.

 

The Rio de Janeiro-Sao Paulo-Campinas bullet train project is in line with other similar major investment projects in road concessions, oil and gas amongst others that BNDES has funded.


14 July 2010.