São Paulo’s state government has republished the bidding notice for the Santos–Guarujá immersed tunnel.

The new version of the public notice includes technical and operational adjustments to the concession model, aiming to increase the appeal to the private sector, ensure legal certainty, and enhance contract execution efficiency.

The tunnel – Brazil’s first immersed tunnel – will be 1.5km long, with 870m running beneath the estuary channel. It will connect the two cities of Santos and Guarujá, which are currently served by ferries and small passenger boats which transport more than 21,000 vehicles, 7,700 cyclists, and 7,600 pedestrians per day.

The tunnel will have three lanes in each direction, including one lane for light rail transit, as well as a gallery for pedestrians and cyclists. The 30-year concession will cover the construction, operation, and maintenance stages, with an estimated investment of R$6.8bn.

“The Santos–Guarujá tunnel symbolises the kind of project we want to deliver transformational, innovative, built through partnerships between public entities, and one that tangibly improves people’s lives. We are responsibly moving forward with a long-awaited project, with technical rigour and a strong commitment to the population,” said Governor Tarcísio de Freitas.

The changes to the public notice result from input gathered during the international roadshow held by the São Paulo government in Europe, which brought together global infrastructure operators. Adjustments include updating the contractual base date to January 2025, revising major cost items — such as concrete, dredging, and diaphragm walls — and re-evaluating the average transportation distance, now considered to be 85km. Traffic projections have also been updated based on the modelling of the Waterway Crossings project.

The model now allows for live bidding on both the public compensation and the public contribution, encouraging greater competition and better offers for the government. The deadline for submissions is September 1 at 10 a.m; the proposals will be opened on September 5 at 4pm.

The draft contract has been refined with provisions that reinforce the financial balance and legal security of the concession. It also includes safeguards for the concessionaire, with mechanisms to ensure predictability and contractual protection.

Other changes include the creation of an Expropriation Account, adjustments to risk allocation criteria – especially regarding geological conditions and potential interferences – and the definition of interim solutions for the Cais Outeirinhos and the Guarujá rail yard to ensure continued port and logistics operations during construction.

The project is a partnership between the state government, the Ministry of Ports and Airports, the São Paulo State Transport Agency (ARTESP), the National Waterway Transport Agency (ANTAQ), and the Santos Port Authority.