Funding in place for São Paulo Orange Line

Tunnelling works for São Paulo’s new Line 6 – Orange metro should begin in the second half of 2014 after the state government approved funding for the project.

Governor Geraldo Alckmin and president of the National Bank for Economic and Social Development (BNDES), Luciano Coutinho, signed a US $1.7 billion financing contract on June 26.

The Move São Paulo consortium, which consists of Odebrecht, Queiroz Galvão, UTC Participações and investor Eco Realty, will build the 15.6-kilometre system, dubbed the University Line, and 15 new stations.

The Orange Line, which is expected to be completed by 2020, will link Brasilândia in the north of São Paulo with São Joaquim station in the city’s Liberdade district.

In addition to construction works and the purchase of new trains, the tender also includes the operation and maintenance of the line for 19 years.

The total cost of the project is $9.6 billion which will be split 50/50 between the government and the private consortium.

The remaining $673 million relates to the cost of buying up homes and businesses affected by the new line – a cost that will be absorbed by the government.