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CAF will make available up to US$ 3 million to study Malha Oeste railroad concession

Jan, 18, 2021 Posted by Ruth Hollard

Week 202103

The structuring study for the new concession of the Malha Oeste railroad will have a budget of up to US$ 3 million to hire consultants and prepare technical, economic, environmental, and legal feasibility studies for the bidding process. The money will come from a technical partnership between the Brazilian government and the Latin American Development Bank (CAF).

Upon approval, CAF will hire consultants from the private sector, in addition to adding its own expertise in infrastructure and financing projects to the project, together with the Federal Government team. The bidding procedure will be carried out by ANTT (the national land-transportation agency), as in other railroad concessions.

Controlled by Rumo, Malha Oeste passes through the states of São Paulo and Mato Grosso do Sul, with 1,973 km of 1m-gauge lines. The railway infrastructure needs to be renovated since the investments were not sufficient for proper operation. This can lead to a loss of transport capacity, speeds below potential, and a limited volume of cargo transported.

In October 2020, the Special Secretariat of the Ministry of Economy’s Investment Partnership Program (PPI) asked CAF for technical and financial support for the hiring of consultants after ANTT and the Planning and Logistics Company (EPL) showed interest in the process. Two months later, on December 2, the qualification for the re-bidding of Malha Oeste was recommended by the PPI through Resolution CPPI nº 146, of 12/2/2020.

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