IDB, BNDES Ready Jumbo Rail RFP

The IDB and the BNDES are within months of issuing an RFP seeking financing proposals for a $9bn Brazil project, say executives involved in the process. The venture to construct a high-speed train between Sao Paulo and Rio de Janeiro has gained traction, despite a challenging financing environment and apparently no specific allocation for the project within the federal government’s national infrastructure plan. The most recent version of the rail plan is understood to have been set in motion by Italian engineering and infrastructure shop Italplan. Several global shops including Allstom, Mitsubishi, Siemens and Bombardier, are heard to have expressed interest in the concession. While a large portion of the financing is likely to come from the IDB, BNDES and likely other multilaterals, as well as ECAs, executives involved believe commercial banks will have to provide a significant chunk of the funding. The IDB and BNDES have hired Shearman & Sterling for legal counsel on the project.