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

  • Boom in Asian infrastructure investment
    April 5, 2012
    Investment in China and India continues unabated, but other nations on the continent are eager to attract companies as Patrick Smith reports Asia is still booming despite the current economic crisis, and new infrastructure programmes are constantly coming on stream. Powerhouses China and India, with their double-digit growth figures and huge infrastructure plans (in scope and cost), are leading the way and are still magnets for businesses wishing to expand, both in terms of facilities and customers. But oth
    Read More
  • Plans are moving ahead on the new Argentina-Chile tunnel
    June 24, 2013
    Plans are progressing with regard to the Agua Negra tunnel that will connect Argentina and Chile and is expected to cost in excess of US$850 million. The authorities in San Juan province are calling for proposals to construct the tunnel and have published the terms and conditions for the tender. Those interested in the project will have to submit their proposals before 4th October 2013. A number of companies have shown an interest in the project including firms from Brazil, China, Germany, South Korea, Swit
    Read More
  • Poland's big transport plans
    July 6, 2012
    The European Investment Bank (EIB) looks likely to grant Poland a loan of €1.6 billion to carry out several key infrastructure projects. Some of the money will be used to finance the A2 highway from Lodz to Warsaw; Warsaw's southern ring road and a 50km section of the A4 highway to link with Germany.
    Read More
  • Brazilian contractor uses novel methods for high quality road
    January 5, 2015
    Cold-in place recycling method provides fast road rebuild in Brazil In Brazil a road contractor has carried out a high quality road rebuilding job, using novel techniques. Contractor Brown Brown is located in Santa Teresinha in the state of Bahia and recently carried out a two-week job for the company to rehabilitate sections of highway BR-381. The highway is an important route in Brazil and runs from Sao Paulo to Belo Horizonte. Highway BR-381 or Rodovia Fernão Dias, as it is called, stretches some 576km
    Read More

Highlighted Content