By Brazil Stock Guide – São Paulo’s Metro Line 4 concessionaire ViaQuatro has signed the 10th amendment to its concession contract with the state government, paving the way for a R$3.9 billion ($750 million) expansion that will extend the Yellow Line to Taboão da Serra. The project, signed on September 26, covers about 3.3 kilometers and includes two new stations—Chácara do Jockey and Taboão da Serra—six trains and a new power substation, with financing under negotiation with the World Bank.
The amendment also recognizes an economic imbalance of R$531.7 million ($102 million) due to delays in completing Phase II of the line, which had weighed on tariff revenues. To rebalance the concession, ViaQuatro secured an early extension of the contract by 20 years from June 21, 2040, a fare increase of R$0.4230 per passenger starting September 2025, additional revenue from new passengers once the extension enters service, and a R$3 billion ($580 million) contribution from the state.
ViaQuatro’s parent company Motiva said the deal is aligned with its strategic plan unveiled at its Capital Markets Day 2025, highlighting controlled risk, capital discipline and value creation in its rail business. The company emphasized its commitment to urban mobility infrastructure in Brazil.
The extension to Taboão da Serra has been debated for over a decade, as the municipality of more than 300,000 residents has long pressed for direct metro access to São Paulo’s network. For Motiva, the expansion strengthens long-term cash flow visibility while reinforcing its infrastructure footprint.
The project is expected to boost ridership significantly and improve ViaQuatro’s financial stability. For São Paulo, the partnership also signals deeper ties with international development lenders, potentially unlocking new World Bank-backed projects across the rail portfolio.
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