The major obstacle for the 510 kilometers (317 miles) project which has been under discussion for years has been financing but apparently the problem has been finally solved: 70% will come from public funds and the rest from the private sector.
Another major obstacle, the environment impact for such an outlay, has also been addressed with the federal government promising to speed the necessary licensing once all the needed studies have been accomplished because the HST link crosses densely populated areas.
The overall project cost is estimated in US$ 18.7 billion of which US$ 11.8 billion will be financed by the federal and state governments through the National Economic and Social Development bank, BNDES while the rest, US$ 3.8 billion will be contributed by the private sector.
The federal government will also put the money for all the land expropriations needed plus an additional US$ 600 million for the agency to operate the HST, the High Speed Train Transport Corporation, ETAV.
"We have already agreed with the Rio do Janeiro state government to exempt the project of taxes and levies on the acquisition of materials and equipments for the project", said Bernardo Figueiredo, head of the National Agency of Land Transport.
He added that the agency was only waiting for a similar reply from the state of São Paulo.
The decision should benefit the winning bid for the project builder that is to be held at the São Paulo stock exchange, sometime in the last quarter of this year, according to the Ministry of Transportation national policy director, Marcelo Parrupato, as reported in the São Paulo press.
Mercopress