Thursday, July 15, 2010

Brazil Eyes High Speed Rail Line

The Brazilian government is planning to build a high speed rail line to connect Sao Paulo and Rio de Janeiro, its two largest cities. Construction of the line is not likely to be complete by 2014 when the country hosts the World Cup, but will probably be operational in time for the 2016 Olympics in Rio de Janeiro. The government will auction the concession for building the line this December.

The tender offer projects a total cost if 34.6 billion Brazilian reals ($19.5 billion) for the bullet train. Of this, BRL20 billion in financing will come from Brazil's National Development Bank, or BNDES, and BRL4 billion from import-export banks in supplier countries, leaving a little more than BRL10 billion for financing by private sources.

The auction will take place at Brazil's BM&FBovespa stock exchange in Sao Paulo on Dec. 16 and will be open to both domestic and foreign investors.

Brazil Sets Dec. 16 For Auction Of Bullet Train Concession
Automated Trader
July 13, 2010