Project Name: Structuring of the Sponsored Concession (PPP) of Line 18 – Bronze of the São Paulo Metro Year: 11/2013 – 04/2014
Location: São Paulo/SP
Client: Empresa Metropolitana de Transportes Urbanos de São Paulo – EMTU
Main project features: Support for the Structuring of the Sponsored Concession (PPP) of Line 18 – Bronze, comprising advisory services for the analysis of the economic-financial feasibility study and the final PPP modeling, examining the assumptions, guidelines, and results presented in the study and modeling, aiming at their validation and the preparation of the bidding documents for the PPP of Line 18 – Bronze of the São Paulo metro network, with monorail technology, which will connect the ABC region to the rail transit system of the São Paulo Metropolitan Region via integration at Tamanduateí station and the ABD Corridor. It consists of 14.9 km of operational route between Tamanduateí and Djalma Dutra stations, comprising 13 stations, as well as two intermodal integration terminals, a train parking and maintenance yard, and a parking facility for three trains along the line, with estimated investments of BRL 4.26 billion (base date Aug/2013) and a demand of 342 thousand passengers/day.
Activities performed: Evaluation of key assumptions used in the feasibility study and concession modeling, as well as impacts on cash flow and main financial model indicators (IRR, NPV, Payback, DSCR, etc.), Analysis of the source of funds composition and capital structure, Evaluation of the remuneration model (pecuniary consideration, tariff revenue, and ancillary revenue) contained in the modeling, Analysis of risk mitigation mechanisms and impacts on results, including the development of the demand risk mitigation mechanism and calculation of its respective parameters, Evaluation of the guarantees and insurance structure, Formatting of economic-financial equilibrium mechanisms, Preparation of concession bidding documents: bidding notice, draft contract, guidelines attachments and business plan spreadsheets, commercial proposal attachment, and Advisory support in clarifying doubts during the public hearing and public consultation.