By Brazil Stock Guide – Motiva Infraestrutura de Mobilidade S.A. (B3: MOTV3) said São Paulo’s transport regulator ARTESP has recognized an economic imbalance of R$531.7 million (about US$100 million) in favor of its ViaQuatro unit, which operates the Line 4-Yellow subway. The adjustment reflects revenue shortfalls caused by construction delays that were the responsibility of the State.
The ruling, published Wednesday (Sept. 17) under Deliberação nº 450, cited setbacks in completing Phase II of the concession, which included full operation between São Paulo-Morumbi and Luz. The late delivery of Vila Sônia station—the last to open and the most delayed—was singled out as the main driver of losses.
The imbalance was initially estimated at R$11.45 million in present value as of February 2005, based on the contract’s internal rate of return of 15.12%. Updated to February 2025, in the 19th year of the concession, the amount swelled to more than half a billion reais.
ARTESP also said applying the concession’s demand-risk mitigation band through May 2028 could reduce the imbalance by about R$4.46 million in 2005 VPL terms—equivalent to a potential 39% cut.
Next Steps
The recognition clears the way for a contract addendum that will determine how the rebalance is implemented, whether through fare adjustments, an extension of the concession term, or direct compensation.
With nearly 1 million daily passengers, ViaQuatro is part of São Paulo’s flagship PPP program and often cited as a benchmark for private-sector participation. Analysts say the ruling underscores the asymmetry in Brazil’s concession framework: concessionaires bear the burden of operational efficiency, while state delays can translate into multimillion-dollar payouts.
Motiva said it will update shareholders once the addendum is signed.
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