SP Metro Rescind Line 4 Construction Contract Amidst Continued Delays

SP Metro Rescind Line 4 Construction Contract Amidst Continued Delays

São Paulo Governor Geraldo Alckmin has confirmed that contracts with the Isolux Corsan-Corviam consortium for the construction of new stations as part of the Line 4 extension of the Metro have been rescinded. Five years after the projected completion date, the works remain a long way from completion and are already well over budget.

A new contract tender to complete the works will open in the coming days, according to the city government.

The Metro have stated that the decision was made because the company has failed to meet deadlines in accordance with the contract, abandoned works, failed to meet quality and safety standards and failed to pay subcontractors and suppliers.

The consortium was informed of the unilateral decision on Wednesday 29 July, and may face fines of up to R$23 million.

Following the decision the Spanish lead consortium said that the Metro had “managerial limitations”, and that it was the consortium which asked for the contract to be terminated.

The line, which at present operates seven stations, is one of the main arteries of the network, linking with the north-south and east-west lines.

Isolux Corsan-Corviam was responsible for the construction of the second phase of the line, which includes the construction of five stations; Oscar Freire, Higienópolis-Mackenzie, Sonia Village and São Paulo-Morumbi, while Fradique Coutinho, is already in operation.

Work on the second phase of Line 4 (Yellow Line) began in April 2012, with Isolux Corsan-Corviam contracted to deliver projects valued at R$559. To date, only one station has been completed, the Fradique Coutinho station which was finished in November last year.

With the end of the second phase, the line will have a total of 11 stations with 12.8 km long. The regional government’s initial forecast was that the entire line would be ready by 2010.

ViaQuatro, responsible for the operation of the 4-yellow line, said it does not comment on the breach of contract for the proposed construction of the stations, which is the responsibility of the Metro and the Isolux Corsan-Corviam.