By Brazil Stock Guide – Motiva Infraestrutura de Mobilidade S.A. (B3: MOTV3) said the São Paulo state transport regulator ARTESP approved the early extension of its Line 4-Yellow metro concession, operated by subsidiary ViaQuatro, to include the planned expansion to the municipality of Taboão da Serra.
The concession amendment addresses an economic-financial imbalance and provides for investments in civil works, systems installation, signaling, and the purchase of new rolling stock. ARTESP’s board recognized a rebalancing in favor of the concessionaire amounting to BRL 136.77 million ($25m), at February 2005 values, with an internal rate of return of 11.076%.
“The contractual amendment ensures both the continuity of Line 4’s expansion and the financial stability of the concession,” ARTESP said in its ruling.
The extension will be formalized through Amendment No. 10 to the contract, already approved in draft form by ARTESP. The term will specify the new expiration date of the concession and the rebalanced financial values. Motiva said it will keep shareholders and the market informed as the process moves forward.
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