Federal guarantee for São Paulo loans for Line 4-Yellow metro and Rodoanel

According to g1 São Paulo, the Ministry of Finance has authorized federal guarantees for two loans taken by the São Paulo state government, totaling R$ 3.16 billion. The money is meant for investments in Line 4-Yellow of the São Paulo Metro and in the Mário Covas Ring Road (Rodoanel Mário Covas).

What the loans will fund

The larger loan, of R$ 2.22 billion, will be contracted by the state with Banco do Brasil. It is intended as a contribution to the public-private partnership (PPP) responsible for the extension of Line 4-Yellow, known as Phase III of the project. The line is run by the Motiva group, according to the report.

The second loan, of R$ 942.2 million, is also from Banco do Brasil. It will pay for work on the southern and eastern sections of the Rodoanel. According to g1 São Paulo, the resources will cover access works between the ring road and the municipalities of Suzano and Poá, in Greater São Paulo, along with electronic free-flow toll systems that charge tolls automatically without toll booths.

What the guarantee means

A federal guarantee means the Union takes responsibility for the debt if the state does not meet its financial obligations. In return, the state must offer counter-guarantees that allow the Union to recover any amounts it pays in its place.

The authorization does not release the money yet. It is a necessary step before the financing contracts can be formalized. The orders were signed by Finance Minister Dario Carnevalli Durigan on November 9. Governor Tarcísio de Freitas had sanctioned a law in April authorizing the loan requests.

Related road works

In a separate report, g1 São Paulo says that the final section of the Rodoanel Norte, linking the Fernão Dias highway to the Perus area in the North Zone of the city, has been postponed to April 2027. According to the Artesp state transport agency, confirmed to SP1, the previous target of the end of 2026 for the last 20 kilometers could not be met. Heavy rain in the second half of the year, together with the El Niño phenomenon, affected the pace of construction.