IDB Lends $129m to Sao Paulo Subway

The IDB has approved $128.9m in financing for ViaQuatro, the company in charge of construction of Line 4 of the Sao Paulo metro. The public-private partnership includes a direct A loan in two phases for $128.9m and a syndicated B loan for approximately $213.2m. “The new line will add approximately 21% in additional capacity to the metro system and the benefits of the project are expected to be shared broadly across low, medium and higher income populations,” says the IDB. The public sector is responsible for construction, while supply of rolling stock and systems as well as operation and maintenance will come from ViaQuatro, which has a 30+ year concession. The sponsors of the project are Brazil’s Companhia de Concessoes Rodoviarias and Montgomery Participacoes, as well as Japan’s Mitsui.