Annoucement to the Market – Metro System PPP – Salvador and Lauro de Freitas
Annoucement to the Market – Metro System PPP – Salvador and Lauro de Freitas
Metro System PPP – Salvador and Lauro de Freitas
São Paulo, August 23, 2013. – CCR S.A. (“CCR”) (BM&FBovespa:CCRO3; Bloomberg:CCRO3BZ; Reuters:CCRO3.SA), in compliance with CVM Instruction 358, hereby informs its shareholders and the market in general that, on this date, the Special Bid Commission of Bid Notice 01/2013 (“Bid”), promoted by the Bahia State Government via the Department of Urban Development — SEDUR, declared as winner the proposal submitted by Companhia de Participações em Concessões (“CPC”) for the execution, under the sponsored concession type of Public Private Partnership, of construction works and systems, supply of rolling stock, operation, maintenance and expansion of the Salvador and Lauro de Freitas Subway System (“CONCESSION”), awaiting the CONCESSION’s award.
The CONCESSION will be valid for thirty (30) years as of the date of signature of the respective Concession Agreement (“AGREEMENT”), with partial operations scheduled to begin in up to nine (9) months as of the signature date of the AGREEMENT, with conclusion of the works and full operations.
The conquering of the CONCESSION of the Salvador and Lauro de Freitas Subway System represents another important step taken by CCR in line with its strategic planning, which aims to grow with sustainability, adding value to shareholders and contributing to the economic, social and environmental development of Brazil.
Message from the CEO
Renato Alves Vale: “We are pleased to announce that CCR won the bidding process for the implementation and operation of Salvador and Lauro de Freitas metro system. This achievement allows CCR to expand its operations in the Northeast region of Brazil, fostering the sustainable development through the improvement of transport infrastructure. The Salvador’s metro system is CCR’s one more important business in the passenger transport sector.”
Purpose of the Concession
The project will be performed in a public-private partnership (PPP), as a sponsored concession, for the implementation and operations of Salvador and Lauro de Freitas Metro System, including the construction or adaptation, maintenance and operations of Passenger Transfer Terminals.

- Line 1 (Lapa – Pirajá): 12.2 km – 8 Stations – 4 Transfer Terminals
- Stretch 1: Lapa Station – Acesso Norte Station -> Concluded (5.6 km length)
- Stretch 2: North Access Station – Pirajá -> 6.6 km length
- Line 2 (Bonocô – Airport): 21.2 km length – 11 Stations – 4 Transfer Terminals
| Stretch | Line | Begining of Operation (number of months after the begining of the contract) |
| Existing Stretch | Line 1 | Up to 9 months (Assisted Operation) |
| Lapa – Retiro | Line 1 | Up to 11 months |
| Lapa – Pirajá | Line 1 | Up to 15 months |
| Lapa – Rodoviária | Line 1 and Line 2 | Up to 24 months |
| Lapa – Imbuí | Line 1 and Line 2 | Up to 30 months |
| Lapa – Pituaçu | Line 1 and Line 2 | Up to 30 months |
| Lapa – Mussurunga | Line 1 and Line 2 | Up to 36 months |
| Lapa – Aeroporto | Line 1 and Line 2 | Up to 42 months |
| Project Information | ||
| Concession Term | 30 years: 42 months of civil works and begining of operation until the 9th month | |
| Total Extension | 33.4 km | |
| Lines | 2 Lines | |
| Stations | 19 | |
| Tariff Remuneration (per transported passenger) | R$ 2.10 | |
| Readjustment | 85% IPCA / 15% Electric Power Index | |
| 42nd Month Referential Daily Demanda (pax/working day) | 499,175 | |
Source: Government of Bahia State
The Concessionaire’s remuneration will derive from tariff revenue, which is the product obtained from multiplying the number of passengers by the remuneration tariff established in the bid notice, and from the annual payment of monetary consideration totaling R$127.6 million.
The private sector will be responsible for the implementation works, acquisition of trains and systems, operations and maintenance.
| Investment | |
| Total Investment | R$ 3.6 Billion |
| Capital Contribution from Government | |
| OGU PAC Mobilidade Grandes Cidades | R$ 1,0 Billion |
| Financing PAC Mobilidade Grandes Cidades | R$ 1.0 Billion |
| Balance of the Agreement with the Federal Government and CTS – Line 1 | R$ 283 Million |
Source: Government of Bahia State
Conference Call:
| In Portuguese: | In English: |
| Wednesday, August 28, 2013 | Wednesday, August 28, 2013 |
| 10:00 a.m. São Paulo / 09:00 a.m. New York | 11:00 a.m. São Paulo / 10:00 a.m. New York |
| Telephone: (11) 4688-6361 | Brazil: (11) 4688-6361 Code: CCR Other Countries: (+1) 786-924-6977 U.S.: (+1) 855-281-6021 England: (+44) 203-514-0445 |
| Code: CCR | Code: CCR |
| Replay: (11) 4688-6312 | Replay: (11) 4688-6312 |
| Code: 9167291# | Code: 5357163# |
| Webcast: www.grupoccr.com.br/investidores | Webcast: www.grupoccr.com.br/investidores |