IDB approves financing deal for São Paulo's Metro Line four project
30 May 2008
A two-phase US$ 128.9 million finance deal has been approved by the Inter-American Development Bank (IDB) for the São Paulo Metro Line four project, according to a news report.
This will support the first Public-Private Partnership (PPP) programme to be launched by the State of São Paulo, Brazil, the report added.
Line four will cross metropolitan São Paulo in a southwest-northeast direction, connecting large business centres such as the Centro Histórico and Avenida Paulista to more residential areas throughout the corridor.
According to the report, the public sector is responsible for the construction of the civil infrastructure works, while ViaQuatro, pursuant to a 30 plus year concession agreement with the State of São Paulo, will perform the supply of rolling stock and systems as well as operation and maintenance.
Local media reported the IDB financing will include the US$ 128.9 million direct loan from the Bank's ordinary capital divided into two phases as well as a phase I syndicated B loan for approximately US$ 213.2 million.
This second loan consists of resources from financial institutions that subscribe participation agreements with the IDB. The amount for phase II of the B loan will be finalised once the investment programme for phase II is defined by the state.
According to the report, John Graham, IDB project team leader said, "The project will expand high-quality public transportation for approximately 1 million users daily once the system is fully complete, representing a significant enhancement in travel time savings, cost reductions on items such as gas and parking and an overall quality of life enhancement due to expanded accessibility."