Brazil's Sao Paulo state sweetens railway concession proposal, delays auction

(Reuters) - Brazil's Sao Paulo state on Saturday sweetened the concession for the construction of a railway line connecting its capital to the city of Campinas and postponed the auction for the project, which is now earmarked at a cost of 13.5 billion reais ($2.6 billion).

The bidding document for the public-private partnership linking the largest city in Latin America to Campinas, located 100 kilometers (62 miles) northwest of Sao Paulo, had been published in March.

The state government, however, has now decided to raise its participation in the project to 8.5 billion reais, up from the previous 6 billion reais, it said in a statement. It also will reduce what it pays to the winning bidder during the 30-year concession to around 250 million reais, from 400 million reais.

The auction, initially set for November this year, has been rescheduled to Feb. 29, 2024. The winner will be whoever makes the lowest bid for payment by the state as part of an exchange-for-service provision.

($1 = 5.1457 reais)

(Reporting by Alberto Alerigi; Writing by Marcela Ayres; Editing by Paul Simao)