Asians intensify dispute for bullet train
Folha de S. Paulo
On the eve of the release of the bidding rules for the Rio-SP bullet train, the parties possibly interested in the work, budgeted at R$ 34 billion (US$ 18.9 billion), are already getting ready for the dispute. On the radar of the governmental authorities responsible for the undertaking two combinations already appeared: contractor Andrade Gutierrez with some Japanese groups (Mitsui, Toshiba, Hitachi, Mitsubishi and Japan Railway) and Grupo Bertin with the South Koreans (Samsung and Hyundai).
The position of the Chinese intrigues the Brazilian authorities. At a first look, the impression is that the association would be made with Odebrecht. There is no such certainty now, and the assessment is that the Chinese may enter alone, to negotiate the association with some national group when the work is already guaranteed.
The last weeks were of intense negotiation between entrepreneurs and the Government for the modification of aspects of the bidding rules considered inappropriate. The expectation now has to do with the approval of the studies by the TCU (Federal Budget Oversight Board) and of any changes the agency may suggest.
The construction of the bullet train will demand heavy public funding. In order to minimize such aspect, one of the rules of the tender foresees that the winner is to be the company or consortium that asks the State less money. Such criterion will have a 70% weight in the classification. The value of the fare will also be taken into account, with a 30% weight. The company asking the lowest fare takes advantage, as long as the ceiling established by the Government is respected: R$ 0.50 (US$ 0.28) per kilometer, or R$ 206.15 (US$ 114.5) between the downtown areas of both the cities (from the Barão de Mauá station, in Rio, to Campo de Marte, in SP).
The Brazilian Government will take part in the winning consortium through a public company that will invest up to R$ 3.4 billion (US$ 1.9 billion). There will be direct financing on the part of the Federal Government, of up to R$ 20.8 billion (US$ 11.6 billion), with maturity of 30 years for repayment. The State will have "golden share" in the winning company, which will give the Government veto power on six issues: 1) change of corporate name; 2) change in address of the corporate headquarters; 3) change of corporate purpose; 4) liquidation, merger or acquisition; 5) change of bylaw provisions; and 6) change in the "golden share" itself. The purpose of the public company will be to absorb the high speed passenger railway transportation technology. The technology should be used in future projects: connection between Viracopos and Belo Horizonte, and between São Paulo and Curitiba.