The IDB supported the State of São Paulo to structure and model the public-private partnership

On March 31, the Government of the State of São Paulo issued a public notice to companies interested in participating in the international auction for the sponsored concession for the construction of the North Axis of the Interurban Train (TIC), which will connect the city of São Paulo to Campinas.

With financing from ordinary capital resources from the Inter-American Development Bank (IDB) and the Global Infrastructure Facility (GIF), the construction of the railway line is one of the largest public-private partnership (PPP) projects in Brazil. The IDB, through its PPP Single Window, and the São Paulo State Government have worked together since 2019 to structure the project, one of the State's main mobility initiatives.

With estimated investments of $2.5 billion, the project is part of the São Paulo Investment Partnership Program (PPI-SP). It is expected to attract more than R$12.7 billion in private investments in the coming years, in addition to generating social and economic benefits for the population estimated at R$3.18 billion.

The project aims to serve the greater metropolis of São Paulo, which has nearly 34 million inhabitants. About 65,000 daily passengers are expected to use the new São Paulo-Campinas express service through 2055 and about 650,000 daily passengers are expected to use local services.

"This is an ambitious project, but it is necessary and very well structured. Partnership with the IDB has been fundamental to get this far," said Rafael Benini, secretary of investment partnerships of the State of São Paulo.

For Gaston Astesiano, the head of the IDB's PPP Single Window, the TIC is a project of great impact for improving the lives of São Paulo residents. "Private participation will be fundamental for this project’s financial, environmental and social sustainability – aspects that we have analyzed in detail since the beginning of structuring this PPP," he said.

The IDB’s representative in Brazil, Morgan Doyle, welcomed this stage of the project. "PPPs are an important instrument, not only for making projects viable and sharing risks, but also a powerful investment-management tool. The São Paulo State Government is a pioneer in this approach, and it is an honor to be able to support them in an initiative that will generate so many benefits," he said.

The presentation of proposals is scheduled for November 28 at B3, the São Paulo Stock Exchange. The IDB will continue to support the State's next steps in this project that will positively impact the population and the economy.