Brazil’s budget cuts threaten the Santos-Guaruja immersed tunnel

August 18, 2015
Adjustments to Brazil's budget could pose a threat to the planned immersed tunnel between Santos and Guaruja in Sao Paulo state, local media reported.

Sao Paulo state had put the project out to tender and had verbal support from the national treasury to borrow up to US$2 billion to finance the project. However, because of the economic crisis, this support has not materialised.

The tunnel would by 1.7km long, carry six lanes of traffic and be at an estimated depth of 35m.

Out of $918 million needed for the tunnel, Brazil's national development bank BNDES had already approved $269 million while the state of Sao Paulo had committed $258 million, leaving a $373 million gap. Sao Paulo state has half the resources needed already but it will not go ahead with the project until all the funds are available, local media reported.

Out of five consortia that presented a commercial proposal, four are prequalified: ISG Interligacao Santos-Guaruja, made of 1339 Andrade Gutierrez, 3086 Daewoo and CR Almeida; Nova Travessia, made of Constran, Ing E Mantovani and Piacentini Tecenge do Brasil; Tunel Santos-Guaruja, made of 1305 Odebrecht, Queiroz Galvao, 1511 OAS and Strukton; Sigma, made of J Malucelli Construtora de Obras, Grandi Lavori and 7809 Salini Impregilo; and Construtor Tunel Santos-Guaruja, made of Camargo Correa, 2717 Ferrovial Agroman and Carioca Engenharia.

Sao Paulo’s state highway agency 2529 Dersa has produced a video of the proposed submerged tunnel.

For more information on companies in this article

Related Content

  • JCB’s $100mn Brazilian factory opened
    September 28, 2012
    JCB’s new US$100 million factory in Brazil has been officially opened as the company strengthens its position in rapidly-expanding Latin American markets. At full capacity, the new plant will have the capability to produce 10,000 machines a year, and it replaces two smaller plants in Sorocaba, São Paulo State, the first of which JCB opened in 2001 to produce backhoe loaders and the second in 2010 to produce tracked excavators.
    Read More
  • Yanmar mini excavator B-7 Sigma works in a tight spot
    September 30, 2016
    A compact excavator B7 Sigma by Yanmar Construction Equipment Europe has produced a big effort in the small German town of Dorfhain, near Dresden. The machine, acquired from the Yanmar dealer SK Baumaschinen, has as a special feature the Sigma boom that enabled it to work very precisely on a driveway located on a difficult slope and with limited swing area.
    Read More
  • Plan to complete Colombian tunnel project
    December 1, 2014
    In Colombia plans are underway to try and revive the project to construct the La Linea tunnel. The project has been beset with problems since work commenced. Problems have included insufficient funding, unexpectedly poor ground conditions and some firms involved having the wrong kind of insurance. The Segundo Centenario consortium is building the La Linea tunnel and is keen for this to continue. The new plan involves the incorporation of local firm Construcciones e Inversiones Beta, which would acquire a 40
    Read More
  • Caterpillar Foundation supports sustainable cities Initiative
    April 25, 2012
    The Caterpillar Foundation today announced a five-year, $12.5 million grant to the World Resources Institute (WRI) to advance the progress of environmentally sustainable and livable cities in China, India, and Brazil.
    Read More

Highlighted Content