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

  • Korean bridge construction poses challenges
    February 23, 2012
    On South Korea's southern coast, an innovative highway sea crossing is providing many engineering challenges
    Read More
  • Korean bridge construction poses challenges
    April 5, 2012
    On South Korea's southern coast, an innovative highway sea crossing is providing many engineering challenges The new Busan-Geoje crosses from South Korea's second city to its biggest island and is slightly shorter than the 12km of the country's famous Incheon project. In addition the main cable stay bridge for the Busan-Geoje project has a 475m span rather than the 800m of the Incheon central span. However the 8.2km Busan-Geoje project faces perhaps greater technical challenges and also includes a second b
    Read More
  • Brazil’s roads budget faces major cuts
    May 14, 2019
    A series of major road projects in Brazil have had their budgets cut. Construction works for 56 motorway projects have seen budgets cut, and in some instances removed altogether. The Brazilian national department for transport infrastructure (Dnit) had a previous budget of US$1.59 billion for road development projects. This has now been cut to $1.04 billion, less than 33% of the budget for 2014. Projects to have been hit include widening the BR-316 in Piau State, widening the BR-364 in Rondonia State, build
    Read More
  • Panama’s turnkey contracts worth US$4.51bn signed since 2009
    December 11, 2013
    Turnkey contracts, including major transport projects, worth US$4.51 billion (EUR 3.28bn) have been signed under the current government administration in Panama since its election in 2009, it has been reported. The value of the turnkey contracts signed during President Ricardo Martinelli’s time as head of state includes US$1.09 billion allocated to five contracts to widen a 185km road section between Santiago de Veraguas and David to four lanes. The most expensive contract, worth US$ 1.64 billion, is for a
    Read More

Highlighted Content