Interlagos Racetrack Complex Concession Bid Notice Expects to Raise R$1 Billion
SÃO PAULO, BRAZIL – The São Paulo City Government (PMSP) announced on Wednesday, November 6th, the Interlagos Complex concession, which houses the Brazilian Formula 1 Grand Prix. The final bid notice provides that the winner will be in charge of renovating, managing, maintaining, operating, and exploring the 900,000 m² area of the complex.
“The city of São Paulo will have a financial benefit that exceeds R$1 billion (US$250 million), considering that it will no longer need to take care of the area, the investment that will be carried out and the tax to be collected. The City Government will be in a position to apply the resource and its attention in essential activities, such as education, health, safety, and transport”, said Mayor Bruno Covas, in a video that was exhibited during the press conference.
The bidder submitting the best financial proposal to the city government (greater value of fixed grant) will be able to explore multiple uses for the area (motorsports, entertainment, hospitality, shopping, commercial and logistics warehouse, etc). It will also commit to the Administration, under contract, to reserve 80 days of preferential use for the State Police of São Paulo.
The bidding in the international competition model expects economic benefits for the municipality of approximately R$1 billion over the 35 years of the concession – payment of grants, relief from the municipal budget, investments and payment of ISS (tax on services) to public coffers.
“This proposal has been under study since 2017, when the Municipal Privatization Plan was approved, which included the Interlagos complex among its proposals. First of all, we thought about privatization, but this year, due to the guarantee of maintenance of the automotive complex in the region, we chose to change it to a concession agreement, ensuring that the Interlagos tracks in that area are suitable and maintained,” said municipal Government Secretary, Mauro Ricardo Machado Costa.
The edict also sets criteria for technical qualification for those interested in bidding for the Complex. A technical-professional certification will be required, demonstrating experience as an operator, manager, and structurer of at least one official racing competition.
A technical-operational certification will also be required, proving that the company has economically exploited, managed a multipurpose enterprise or held events involving the attendance capacity of at least 10,000 people.
In order to enter the bidding process it will be necessary to include in the proposal, in addition to the detailing of potential uses of existing structures, particularly for large events, the study of potential additional developments, and the analysis of general aspects of the administration of the race track – maintaining and exploring the race track.
The Interlagos Complex should house leisure and cultural facilities in addition to automotive sports, also ensuring better structuring and requalification of the area.
According to the city government, the initiative does not interfere in the holding of the Formula 1 Brazilian Grand Prix: “The granting of the race track does not interfere in our negotiations with the FIA [International Automobile Federation], especially because if there is no concession the city government will continue managing the race track, as it has done for many years, including significant investments that have been made,” said the secretary Mauro Ricardo.
The future concessionaire will be required to modernize, restore, review and reconfigure all the systems that make up the complex, including the electrical, hydraulic, sewage, drainage, telecommunications, information technology, and air conditioning systems. In order to carry out such interventions in the area, bidders must seek all required approvals, licenses and/or permits. Improvements are also planned in terms of security, by implementing cameras connected to a Command and Control Center.
The complex consists of the José Carlos Pace Racetrack and the Ayrton Senna Karting Circuit. It also features an off-road track, a perimeter support track, arenas, and an administrative building. Inaugurated on May 12th, 1940, it has hosted international championships and races, as well as large shows and festivals.
Source: Agência Brasil
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