According to Diário do Transporte, the federal government has authorized a Union guarantee for a financing of R$ 2.223 billion for the extension of Line 4-Yellow of the São Paulo Metro. The loan will be contracted by the State of São Paulo with Banco do Brasil.
The funds are intended for the public financial contribution to the public-private partnership (PPP) responsible for the third phase of the line's extension. The authorization appears in a decision on a federal administrative process, the report says.
Conditions still pending
The guarantee depends on the National Treasury Attorney General's Office (PGFN) verifying that specific requirements set out in Ministry of Finance Normative Ordinance 500 of 2023 have been met. A counter-guarantee contract between the parties also still has to be formalized.
Legal basis
The operation is based on state legislation. The project is provided for in State Law 18,067 of 18 December 2024, later amended by Laws 18,353 of 15 December 2025 and 18,418 of 13 March 2026. The federal guarantee is framed under Article 6 of Federal Law 11,079 of 2004, which sets rules for public-private partnerships.
What remains unknown
The authorization is one step toward contracting the loan and directing the resources to the public contribution under the PPP. According to Diário do Transporte, the decision does not set a timetable for releasing the financing and does not detail the works planned for this phase of the expansion.