São Paulo Government modifies Airport Express bid rules

By UNCLLS payday loans

Friday, 30 Jan 2009 02:02

Now, the group or company, offering the government the highest grant value shall win the bid, and no more the one who offers the lowest fare for the service, as previously planned. The change is in decree of the Metropolitan Transport Department, published on 22nd in the state’s Gazette.

According to the document, the amendments reflect suggestions made by interested groups in a public hearing held in August of last year, and also deliberations of the Council of the State Program of Privatization (PED). The document does not give information on when it should be published the bid rules, which will be international.

In addition to the taxed grant, the project also includes yet the payment of a variable grant corresponding to 1% of the fare revenue, as remuneration for management and supervision of the concession contract, which will take 35 years.

Sao Paulo Airport Express Project

Singular companies or the ones assembled in consortium may take part in the process, which will be driven by Companhia Paulista de Trens Metropolitanos (CPTM). The execution of the infrastructure works will be under the winner’s responsibility, as well as the necessary expropriations for the implementation of the works.

Another responsibility of the company that wins the bid is to obtain the environmental permits for installation and operation. However, the granting authority will have to obtain the prior environmental license. The decree limits in three years the maximum term for completion of the infrastructure works.

The decree still lays down in R$ 35.00 the fare for the service. It shall rise annually based on the variation basis in the ?ndice Nacional de pre?os ao Consumidor Amplo (IPCA/IBGE). The basis date shall be the month of October 2008.

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