Press release

$20 billion of Sao Paulo infrastructure contracts open to UK firms

Lord Green welcomes trade delegation from Sao Paulo, who are in the UK to present infrastructure projects worth $20 billion.

Trade Minister Lord Green has welcomed a trade delegation from the Government of Sao Paulo today, who are in the UK to present eight Public Private Partnership (PPP) infrastructure projects, worth $20 billion, to British potential contractors.

The PPP projects for Sao Paulo, to be presented in the City of London today, include the construction and maintenance of three subway lines, a monorail, an intercity train network, three prison complexes and four new hospitals.

Trade and Investment Minister Lord Green said:

As Sao Paulo prepares to host the World Cup in 2014, there are some great infrastructure projects ready to get underway in Brazil. Our construction sector is one of the world’s biggest and best, and UK companies are ideally placed to capitalise on these excellent opportunities.

For the London Olympics 2012 we showed the world what we can do. We have already witnessed the incredible regeneration of east London, with world class facilities and a new urban park created. We are now working hard, alongside firms around the country to follow up the contacts, networks, announcements and momentum created by the Games.

The Deputy Governor of Sao Paulo, Guilherme Afif Domingos said:

The State of Sao Paulo today is alone the 18th largest economy in the world, accounting for 33% of Brazil’s GDP and it has a credibility track-record to attract investments in infrastructure through partnerships with the private sector. Moreover, the European crisis opens a window of opportunity to awaken the healthy appetite of foreign investors in search of good business options in emerging markets.

The event will involve a roundtable with UK infrastructure companies and banks, which will be introduced by Lord Green and Deputy Governor Afif. There will also be an evening reception at Mansion House, hosted by the Lord Mayor of London, where Lord Green will sign a Memorandum of Understanding between UK Trade & Investment (UKTI) and Invest Sao Paulo.

Notes to Editors

  1. The PPP projects to be announced include:
    • Intercity train network serving Sao Paulo. 416km of rail network for the Metropolitan Transport Secretariat. Investment of BRL 18.5 billion (£5.8 billion). Bid opens November 2013, contract to start in April 2014.
    • Metro Line 6 – Orange for the Metropolitan Transport Secretariat. Investment of BRL 7.8 billion (£2.4 billion). Bid opens January 2013, contract to start in June 2013.
    • Metro line 20 – Pink for the Metropolitan Transport Secretariat. Investment of: BRL 7.5 billion (£2.3 billion). Bid opens October 2013, contract to start March 2014.
    • Metro Line 18 – Bronze (monorail) for the Metropolitan Transport Secretariat. Investment of: BRL 3.01 billion. Bid opens March 2013, contract to start July 2013.
    • Penitenciary Administration Secretariat. The construction, operation and maintenance of three male prison complexes with a total of 10,500 spaces, the spaces are divided into 7,200 spaces in a closed prison complex and 3,500 spaces in a semi-open prison complex. Investment of BRL 750 million (£234 million). Bid opens April 2013, contract from September 2013.
    • The Heath Secretariat. The construction, maintenance and operation of support services in 4 new state hospitals. Investments: BRL 600 million (£187 million). Bid opens in May 2013, contract from July 2013.
    • Education Secretariat. Plans for the implementation of digital interactive equipment in all schools in the Sao Paulo state (totalling 3.3 million students and 163,000 teachers). Bid opens in March 2013, contract from September 2013. Investment of BRL 1.5 billion (£4.7 million).
    • Integrated vehicle management Transport and Logistic Secretariat, the implementation and logistical operation of the removal, deposit, protection and transportation of vehicles, as well as the modernisation of activities deriving from state vehicle inspections. Investments: BRL 1.1 billion (£343 million). Bid opens in June 2013, contract from November 2013.
  2. The government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries’. It set four ambitions in the ‘Plan for Growth’ (PDF 1.7MB), published at Budget 2011:
    • To create the most competitive tax system in the G20
    • To make the UK the best place in Europe to start, finance and grow a business
    • To encourage investment and exports as a route to a more balanced economy
    • To create a more educated workforce that is the most flexible in Europe.
  3. Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.
  4. UK Trade & Investment (UKTI) is the Government Department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy – acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For more information on UKTI, visit www.ukti.gov.uk or visit the online newsroom at www.ukti.gov.uk/media.

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