São Paulo Plans Train Connection between Capital and Campinas, Other Infrastructure

SÃO PAULO, BRAZIL – São Paulo Governor João Doria announced on Friday, October 16th, a plan with 19 concessions, privatizations and partnerships with the private sector for the state over the next two years. Called ‘Retomada 21/22’, the project is committed to R$36 (US$6.4) billion in investments and the generation of two million jobs over this period. Many of the projects had already been announced in 2018 and 2019.

Among the concessions planned are 19 projects in the public transportion, highways, leisure and park areas. The majority of investments, 51 percent, will be made in the transportation sector, with two projects in particular: the concession of CPTM (São Paulo Metropolitan Trains Company) lines 8 and 9, worth US$500 million, and a low speed passenger train connecting the cities of São Paulo and Campinas, with an investment of US$1.4 billion.

This is not the first time that the São Paulo government has mentioned a passenger train to connect the two cities. In August last year, state secretary of Metropolitan Transport Alexandre Baldy said that a railroad was under study, at a cost of R$1 billion. Still in 2020, Doria mentioned the intention of developing a train under the same model as the one linking Miami, in the United States, to its neighboring cities.

The plan also includes the concession of 22 regional airports to the private sector, highway concessions, the Zoo and Botanical Gardens, and the Ibirapuera Park Complex. The entire plan was detailed by the Secretary of Finance and Planning Henrique Meirelles, although the schedule of all concession projects was not disclosed.

“The goal of the plan is to boost economic growth, generate employment and income. Whether in national or multinational investment. The bid notices will be announced in due course, over the next weeks and months,” said Governor João Doria in an interview at the Bandeirantes Palace on Friday, October 16th.

To attract these R$36 billion, São Paulo will conduct an international campaign. According to the government, state offices will be installed in China and the Arab Emirates, in addition to talks with investors from Europe and the United States.

Fiscal adjustment

In addition to the project, Governor João Doria mentioned the proposed fiscal adjustment, submitted by the state executive to the São Paulo Legislative Assembly. During the week, the deputies passed the proposal’s basic text, after criticism even from allies and the government having conceded in some points.

Among the approved proposals are a voluntary resignation incentive plan that can reach about 5,000 state employees, and the elimination of state-owned foundations and companies. The package, in its original text, was intended to save the state budget R$8.8 billion.

Despite its approval, the remaining parts of the package have yet to be analyzed, with the amending riders presented by state deputies. The new session to debate the measures has not yet been scheduled.

Source: Exame