With Just over a month to go for the delivery of the envelopes for the Invitation to Bid for the High Speed Rail (HSR), the Government is looking into the possibility of making the requirements established in the Invitation to Bid more flexible, to attract more companies interested in the business.
One of these is the minimum net worth which is required from the participants. At present, for every 1% of participation in a consortium, the consortium member needs to have a net worth of at least US$ 60.24 million.
After talks to investors, the Government appraisal is that the current rule renders in unfeasible to have participation of smaller companies. This will make it easier to attract more small companies to strengthen the current groups, in the words of the General Director of the National Land Transport Agency (ANTT), Bernardo Figueiredo, exclusively in a statement to Brasil Econômico.
The current forecast is that three groups will be making proposals at the auction: one led by the Koreans from Hyundai, another by a pool of large contractors such as Camargo Corrêa, Odebrecht, Queiroz Galvão and Andrade Gutierrez, and the third by the São Paulo State Association of Businesspeople of Public Works (Associação Paulista de Empresários de Obras Públicas – Apeop), made up of smaller building firms.
The changes in the rules will not attract the formation of new groups, but rather add new participants in the current consortiums. The groups that are already present are those that will be in the running, and I do not see any possibility of new developments, says Mr. Figueiredo.
Changes
Another possible change is in the choice of the companies to receive the technology. According to the Director, the format as originally mentioned in the Invitation to Bid is draconian. According to the current rule, the Government will choose the receiving company or local agent, without the company having room to suggest formats: It is a construction for the next six years. The companies need flexibility to say what works and what does not, he says.
In partnership with the National Bank of Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social – BNDES), the ANTT is considering other single changes to the project. However, Mr. Figueiredo ensures that there will be no changes concerning the expected demand or the financial model.
Risk
One of the main difficulties of consortiums is that of attracting the suppliers of equipment and spare parts so that they also take on the risks of the business. According to representatives of the interested groups, they just want to supply knowledge and equipment to the victorious groups. The groups that hesitate include French company Alstom and German conglomerate Siemens, according to sources that are well informed about the negotiations.
Through their Press Relations Department, Alstom just said that they are interested in the bullet train project and that they have a team in Brazil dedicated to analysis of the Invitation to Bid. Approached, Siemens only said that they are interested in supplying technology and the experience that the company has amassed with several high-speed projects.
Mr. Figueiredo confirms this trend: This is true. With the exception of the Korean group, which appears to be more of the investor type, the foreign companies that have the technology are more suppliers than investors.
One of the arguments they have used to convince them is that the technology mentioned in the winning proposal will be the same used in future expansions of the bullet train services.
If they feel it is not worth it, then they forsake the Brazilian market. As soon as they understand this fact, the situation could be reversed, Mr. Figueiredo adds.
Seja o primeiro a comentar