The Sâo Paulo State government has begun to auction concessions for highways, airports, a metro line, and an inter-city bus system in a bid to cash in on investor interest in the most developed Brazilian state. As a plan to sell federal infrastructure assets languishes while the Brazilian government battles both a political crisis and a recession, Sâo Paulo state is going ahead with its own asset sale plan.

Sâo Paulo State’s Governor Geraldo Alckmin stepped ahead of Brazil’s heralded federal concessions plan and unveiled in mid-November the assets that will be privatized in phases through 2016. Economic terms for the concessions will be released on December 17 by Artesp, the state regulator, and public hearings will begin in January for an airport package and some of the road concessions. A noteworthy point of discussion at the hearings will be the rate of return required to attract investors. Sâo Paulo has already raised it to 9.75%, 3% above the former level.