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The São Paulo state government managed to reverse a court decision and restore the terms of a public-private partnership (PPP) contract for the intercity rail project known as Trem Intercidades.
In February, a consortium made up of the Brazilian Comporte and the Chinese CRRC won the tender for the initiative. The PPP contract to build and operate the 101km line involves investments close to 14.2 billion reais (US$2.75 billion).
However, this month a local court granted a provisional suspension of the outcome of the bidding process following a request filed by the São Paulo railway companies union, STEFSP. The organization raised questions about the process due to alleged irregularities in the preparation of the bases.
“In the appeal presented to the Judiciary, the PGE [Procuraduría General del Estado] stated that the union’s arguments regarding irregularities were weak and that failure to comply with the concession schedule would cause direct losses to both the public coffers and the population,” the state government reported in a statement.
The appeals court accepted the state government’s arguments and gave the green light for the contract to go ahead.
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