São Paulo state signs $1.2 billion contract for government center — The Rio Times
Authorities in Brazil's São Paulo state signed a 30-year contract on October 22 for the construction and operation of a new government center in the central Campos Elíseos district. The project is estimated at approximately 6 billion reais, or $1.19 billion. As The Rio Times reports, the complex is planned to house the governor's office, state secretariats and agencies employing around 22,000 civil servants.
Terms of the public-private partnership
The contract was awarded to the MEZ-RZK Novo Centro consortium, which won an auction on the B3 exchange in February. The group includes Zetta Infraestrutura, M4 Investimentos, Engemat, RZK and Iron Property. Under the agreement, the private operator will build and manage the facility for 30 years, while state authorities will make monthly payments linked to contract performance indicators.
The maximum monthly payment offered by the authorities was 76.6 million reais. The auction winner offered a 9.62% discount, so the monthly payment is expected to be about 69.2 million reais. According to the authorities' estimate, the state will allocate around 3.4 billion reais for construction, while the concessionaire is to provide approximately 2.7 billion reais.
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Buildings, housing and transport
The project includes seven buildings and ten towers, as well as a theater, lecture halls and multifunctional spaces. State authorities say they intend to restore 17 heritage buildings. The more-than-century-old Campos Elíseos Palace is planned to be converted into the government's reception hall.
The plan also provides for 25,000 square meters of commercial and service space, a new Terminal Luz bus terminal near Luz railway station, and more than 6,000 housing units in the city's central area. According to g1, 55% of the planned housing will be intended for lower-income residents.
To implement the project, around 230 properties may be expropriated, according to g1, and approximately 600 families have also been counted in the area. Other media cited an estimate of 312 properties. The schedule calls for preparing documentation, obtaining permits, initial work on the new terminal and the start of expropriations in the first year. According to state secretary Guilherme Afif Domingos, the authorities hope to complete the work by 2030.
