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

  • Brazilian road projects on track
    February 15, 2012
    A package of road works worth some US$206 million will be carried out in Brazil's Sao Paulo State. The civil engineering work will be focused on roads in the Baixada Santista area.
    Read More
  • German government to adhere to Fehmarn Belt tunnel plans
    April 30, 2015
    Germany is to adhere to plans for a tunnel between Fehmarn, Germany, and Lolland, Denmark despite criticism over the cost and a delayed schedule. Denmark alone is likely to foot the €7.4 billion bill for the prestigious Fehmarn Belt Fixed Link immersed tunnel while Germany will pay for only access roads and other connections on its territory. Angela Merkel, Chancellor of Germany, said her government and transport authorities will respond to more than 3,000 objections over the construction of the tunne
    Read More
  • Brazil government to create national electronic toll payment?
    July 17, 2013
    The Brazilian government is considering setting up a national electronic toll payment system. The favoured system will be based on the state of Sao Paulo's solution, which uses an electronic tagging system installed in each vehicle to charge for payments. The proposed national toll payment aims to cover the nation's roads and to track cargo in railways, airports and ports. Brazilian planning and logistics company EPL will be responsible for setting up this tagging system, which is already used by 55% of veh
    Read More
  • A rough ride for Denmark’s National Road Directorate
    November 1, 2019
    Denmark’s National Audit Office has criticised the Danish National Road Directorate for consistently miscalculating the level of investment required for road projects. The Road Directorate – Vejdirektoratet - used 33% less than budgeted for road projects from 2007-2017. The audit office said that "budget calculations by the transport ministry, including the Road Directorate, have not been accurate enough". Jens Holmboe, head of the Road Directorate, rejected the criticism, saying that the Audit Office
    Read More

Highlighted Content