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

  • Brazil's planning problems
    March 23, 2012
    The authorities in Brazil have been facing problems with the expropriation of land needed for new road projects. This is a key issue for new roads planned for the 2014 Football World Cup and is affecting local governments and county councils.
    Read More
  • Sandvik’s Turkish delight at groundbreaking tunnel vision
    May 20, 2014
    Turkey’s longest, and what will be the world’s fourth longest, highway tunnel is being built under Mount Ovit in the northeast of the country. Sandvik Construction is playing a vital role in the construction of the giant new structure, which will enable all-year-round access to what is a relatively remote and often snow-blocked part of Anatolia Having had their freedom of movement blighted for many years by wintertime snow blocking the D925 highway, along with narrower roads and passes, at Mount Ovit, resi
    Read More
  • New Tyne Tunnel
    February 21, 2012
    The organisations behind the New Tyne Crossing project have commissioned the new Tyne Tunnel in north-east England.
    Read More
  • Jacobs and CH2M to merge in a US$3.27 deal
    August 3, 2017
    Global US infrastructure firm Jacobs Engineering Group and one of its main rivals, CH2M, are to merge under a US$3.27 billion deal. In a written statement, Jacobs said it will acquire all of the outstanding shares of CH2M in a cash and stock transaction, including around $416 million of CH2M debt. CH2M had global revenue in the past 12 months of around $4.4 billion and about 20,000 employees. Its contracts are in the water, transportation, environmental and nuclear sectors.
    Read More

Highlighted Content