Mota-Engil Latam Portugal has finalised a concession contract for the Public-Private Partnership (PPP) project to construct, operate, and maintain the Santos-Guarajá Submerged Tunnel in São Paulo, Brazil.

The project entails an investment of approximately 7.8 billion reais ($1.5bn). Public contributions will provide up to 5.1bn reais during the construction phase, shared equally between the São Paulo state government and the federal government.

The concession period spans 30 years, during which Mota-Engil will develop Brazil's first underwater tunnel, measuring roughly 1.5km in length, with 870m submerged beneath the access channel to the Port of Santos.

Upon commencement of operations, the concessionaire will receive a fixed annual revenue of 436.1m reais, alongside an estimated additional revenue of around 2.5bn reais over the operational period of 25 years.

The construction phase is set to last five years and is expected to add approximately €1.2bn to Mota-Engil's backlog.

The tunnel will feature three lanes in each direction, a dedicated line for light rail vehicles (LRV), and designated areas for cyclists and pedestrians.

This infrastructure aims to significantly reduce travel time from an hour to five minutes for approximately 720,000 users of the existing routes.

The project is anticipated to enhance the competitiveness of the Port of Santos, the largest port in Latin America, and stimulate economic activity while promoting sustainability by lowering fuel consumption and emissions in the region.

This contract represents a significant milestone under the New PAC – Growth Acceleration Plan, increasing Mota-Engil's backlog in Brazil to around €2.2bn.

The Mota-Engil Group sees considerable potential for further investment and expansion in the Brazilian market in the medium to long term.