Sao Paulo re-tenders $1.9bn street lighting P3

A Sao Paulo court gave its blessing for the procurement to move forward while excluding one local party from the process.

Sao Paulo has re-published tender documents for an R$7.3 billion (€1.7 billion; $1.9 billion) public-private partnership (PPP; P3) street lighting project with the blessing of the Sao Paulo Court. 

A request for expressions of interest was launched in October 2013 and drew more than 30 responses. In May 2014, 11 of those 30-plus original respondents, including KPMG Structured Finance and AES Servicos, submitted feasibility studies to modernise, streamline, expand and maintain the city's street lighting assets. A tender was launched in April this year, but the process was suspended in June when bidders asked for clarification. 

The submission deadline for proposals is 14 January 2016.

The municipality is seeking a private partner to enter into a 20-year contract. The winning party will be selected on its ability to deliver the project with the lowest-cost monthly payment schedule. The ceiling for monthly payments is set at R$30.16 million.

One stipulation given by the court in its November decision was that AES Eletropaulo cannot participate due to its role in supplying Sao Paulo with electricity, giving it an unfair advantage over other bidders. 

Sao Paulo, Brazil's largest city at roughly 7,900 square kilometres, has the largest municipal economy as a share of GDP in Latin America.