Suburban Light Rail Vehicle - Project Pipeline

Project stage info

Stage 1: Initial Government Announcement

Completed

Government Sponsor
Government of Bahia

Form of project announcement
Government announcement

Project Rationale
The main objective of the Suburban LRV was to replace and modernize the Suburban Train, which did not meet the population´s expectation in terms of quality of service, headway and safety. For the State Government the Suburban Train was also an issue, with high maintenance costs and low demand. With the LRV the State of Bahia expects to better adapt to the region´s transportation network and bring urban improvements to low-income areas of the state in terms of safety, transportation and well-being, as well as deliver higher quality services to the populations that depend on the train to comute.

Indicative timetable of project development
The public bid is expected to occur by the end of August/2017, which will start the negotiations to sign the Concession Agreement, which shall have a 20 year term. From that date, the Concessionaire will have 24 months to finish all investments, including the rail line, operation and maintenance centers and all systems required for operation. The Operation phase will then start on the 25th month and will last until the end of the Concession Agreement.

There are no Project documents available at this time

Project looking for additional PPF assistance
No

Project looking for additional MDB assistance
No

Is project multi jurisdictional?
No

Stage 2: Project Investigation

Completed

Stage 3: Start of Project Feasibility / Business Case

Completed

Legal Advisors Appointed
Manesco, Ramires, Perez, Azevedo Marques

Financial Advisors Appointed
Accenture

Technical and Other Advisors (inc Project Preparation Facility) Appointed
Accenture

Is a Business Case Being Prepared?
Yes

Business Case Prepared By
External Party

Preparer company/department name
Accenture

Estimated Business Case Completion Date
Q2 2017

Estimated Time To Start Of Procurement
Q2 2017

Any other relevant information relating to the project process
N/A

Stage 4: Project Feasibility / Business Case Complete

Completed

Is the Business Case Complete?
Complete

Business Case Completion Date
Q2 2017

Link to summary of business case
http://The business case is not publically available.

Details For Next Step Of Project
Procurement process started on May 3rd, 2017.

Estimated Time To Start Of Procurement
Q2 2017

Other Key Project timeline events
Procurement process expected to be complete by end of June, 2017.

Stage 5: Government Approval / Procurement Stage

Completed

Government Approvals Obtained
Fernando Torres – Sedur

Revenue Source
Combination

Revenue Source Description
Revenues will include public fare, government payment and other operating revenues (advertising and sublet contracts)

Private Sector Opportunities
Construction, Operations

Estimated Time To Start Of Procurement
Q2 2017

Estimated Time To Award Of Contract
Q3 2017

Economically Regulated Asset
Yes

Explanation of regulatory regime
Regulatory regime is explained by article 175 from the Brazilian Federal Constitution, as well as the following pieces of legislation: Federal Law nº 11.079, from December 30th, 2004; Federal Law nº 12.587, from January 3rd, 2012; State Law nº 9.290, from December 27th, 2004; State Law nº 9.433, from March 1st, 2005; State Law nº 11.477, from July 1st, 2009; State Law nº 12.501, from December 29th, 2011; and, when applicable, Federal Law nº 8.987, from February 13th, 1995; Federal Law nº 9.074, from July 7th, 1995; Federal Law nº 8.666, from June 21st, 1993; and Federal Law nº 10.406, from January 10th, 2002.

Length Of Contract (Years)
16-20 Years

Length Of Contract Additional Information
N/A

Estimated Project Value (Local Currency)
1,500 M BRL
433.8 M USD

Procurement website URL
N/A

Estimated Return on Equity (%)