Completion of Works on São Paulo's Line 4 Subway Network to Be Delayed by 1 Year

07/31/2015 - 10h59

São Paulo state governor Geraldo Alckmin (PSDB) overturned the hiring for the construction of new stations for Line 4 in São Paulo's subway, which should suffer a further delay of at least one year.

The breaking of the contract was announced on the grounds that the consortium companies responsible for the works, Isolux Corsán-Corviam did not respect deadlines, abandoned the works, did not meet quality and safety standards and failed to pay subcontractors and suppliers.

On signing the contract in 2006 Alckmin's government forecast was that all stations would be completed by 2010. Now, the most optimistic outlook is 2018.

Line 4 is already operating seven stations, which transports 700,000 people daily and is an important part of the network due to its interconnection with other three subway stations and three train stations.

A new bidding will be open until September to select another company that can complete the four outstanding stations: Higienopolis-Mackenzie, Oscar Freire, São Paulo-Morumbi and Vila Sonia.

"We cannot wait any longer. The consortium will be severely penalized. With all the fines, penalties and the inability to participate in bidding," Alckmin said, to justify the termination.

The Subway Company (Metrô) says the decision was unilateral and there will be a fine of R$23 million (US$6.8 million ) charged to the consortium -headed by a Spanish construction company that is among the largest in the world.

The consortium says that there are "managerial limitations" on the Subway company and that the overturning came from them and that they will charge any outstanding payments.

Line 4 was the first subway line to have been built through a partnership with the private sector to speed up the expansion of the São Paulo subway network.

Translated by CRISTIANE COSTA LIMA

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