ViaQuatro secures São Paulo Line 4 extension funding

São Paulo metro extension financing has been secured in a deal signed by ViaQuatro. It is worth Reais 1.25bn ($US 250m). ViaQuatro operates São Paulo metro Line 4/Yellow under concession. The agreement covers a 3.3km extension with two stations.

São Paulo metro extension financing and backing

Meanwhile, Motiva secured funding under the Pró-Transporte programme, as reported by Rail Journal. Motiva is ViaQuatro’s parent company. The lender was the government-owned bank Caixa Econômica Federal. Also, the financing follows the addendum signed last September to allow the extension under ViaQuatro’s concession. In addition, the arrangement includes corporate guarantees. They match each shareholder’s stake in the Line 4 project until construction is completed.

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Line 4/Yellow extension to Taboão da Serra

Separately, last September, the São Paulo state government signed an addendum with ViaQuatro. It acted through the Secretariat for Investment Partnerships (SPI). The addendum amended the concession contract. It allows the Line 4/Yellow extension to reach the municipality of Taboão da Serra. This will be the first time the metro operates outside the city of São Paulo.

Concession terms and project funding

Also, the addendum formalises a 20-year concession extension. It is in recognition of the Reais 1bn that ViaQuatro will invest in the project. At the same time, the remainder will be provided by the state government and World Bank loans, totalling approximately Reais 3bn, according to Agência SP.

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