Government to assume costs of high speed train expropriations
Valor Econômico
In the financial equation to make the Rio-São Paulo-Campinas high speed train (HST) possible, the Government decided it will pay "at least" the costs with the expropriations - estimated at R$ 3.9 billion (US$ 2.1 billion). That will not be the only way to subsidize the project, assessed at R$ 34.6 billion (US$ 18.2 billion), the most expensive project of the Growth Acceleration Program (PAC, in Portuguese). The Government also foresees, in the economic-financial model that will be released within the next days, tax exemption and stockholding, by means of the BNDES-Par or through state pension funds, as a "strategic partner" of the winner of the public tender.
The promise of the Government of undertaking the expenses with the expropriation of the land the railroad will go through signals the intention of taking the project ahead. Investors have pointed the necessity of public investments equivalent to up to half of the value of the undertaking. Another facility that should be offered to the future concessionaire is the financing at "very low" interest rates.
In the backstage, the government already admits it is not possible to conclude the whole course of the HST and have it working for the 2014 FIFA World Cup, as initially planned. Now, it is considered as more possible to begin the operation by parts, such as the São Paulo-Campinas and São Paulo-São José dos Campos segments. It is in these two segments Halcrow indicated will be the greater flow of passengers for the HST - 64% of the total of 32.5 million annual passengers of the high speed rail.
The bill of law that foresees the creation of the Brazilian Company of High Speed Train Transportation (Empresa Brasileira de Transporte Ferroviário de Alta Velocidade - Etav), which will be sent to the National Congress, is ready. The State company will be responsible for supervising the project, but it will be mainly responsible for receiving the new technologies received for the sector.