São Paulo state preps USD 12.7bn worth of privatization projects 

17 April 2019 - 12:00 am UTC

São Paulo state’s privatization program expects to raise a combined BRL 50bn (USD 12.7bn), the state governor told Inframation on 16 April.

João Dória said São Paulo has 62 projects under the state’s privatization program, also known as Programa Estadual de Desestatização/CDPED, which they plan to procure as PPPs, concessions and through privatization by the end of his administration in 2022. 

“The infrastructure sector concentrates most of the projects and they include roads, railways, subways, metros, airports, the port of São Sebastião, and all the state’s fluvial (river) system,” he said. “We will also sell 1,000 state-owned properties through a real estate fund. These assets have no use and will be sold at stock exchange B3.”

Dória labeled his administration as a “privatizing one.”

“It is the country’s most consistent privatization program in terms of diversity,” he said.

Other assets include the depollution of the Tietê River in São Paulo city, as well as the renovation of public parks and subway stations.

The governor declined to provide a specific timeline for releasing the tenders. 

He said if Bolsonaro’s proposed pension reform is approved by July, then São Paulo state would be in a better position to launch tenders by 2H19.

When questioned about a timeline for assets to be sold or auctioned, Dória said investors would not dispute the projects this year.

Road concessions
The Dória government expects to anticipate, or renew early, several road concessions.

“Early renewal is a law-grounded option. It is more effective (than re-tendering an asset). It is a good alternative and is the one we will follow,” he told Inframation.

Dória, who is seen as a candidate for the nation’s 2022 presidential elections, said São Paulo state would waive the concession fee in exchange for infra investments by the private partner.

“The government waives revenues from the concession fee, but on the other hand it gets investments in roads and increased road safety, which will improve the state road system,” he said.

According to the state surface transport agency Artesp, 21 concessionaires manage 8,400 kilometers (5,219 miles) of roads.

Artesp said five concessions are set to expire by 2022: Autovias (Arteris), Centrovias (Arteris), AB Triângulo do Sol (Atlantia Berlin), ViaOeste (CCR) and Renovias (Grupo Encalso and CCR).

“Out of the (five) contracts, Arteris, which owns ViaPaulista, will operate the Autovias concession. The Centrovias is part of the Piracicaba-Panorama concession lot, whose tender process is on-going,” Artesp said in a statement.

Concessionaires CCR, Arteris and AB Triângulo do Sol did not immediately return a request for comment.

 

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