The governor of São Paulo, Tarcísio de Freitas (Republicans), sanctioned a law that authorizes the subscription of loans of up to 4.9 billion reais to invest in a series of projects considered strategic for the management of the state. The approval of credit operations takes place on the eve of the electoral year, when Tarcísio must seek re-election or run for President of the Republic.
According to the law, whose promulgation was published in the Official Gazette this Tuesday (16/12), the Government of São Paulo is authorized to contract credit operations with national or international financial institutions, in addition to multilateral and bilateral organizations, development agencies and private banks, such as the Inter-American Development Bank (IDB).
According to the government, the loans have already been transmitted by the management to multilateral organizations and the project approved by the Legislative Assembly (Alesp) and sanctioned by the governor only fulfills a formality of legislative authorization to contract the financing. This step is necessary so that the State can sign contracts and make investments.
“They have all been subject to regular processing, with prior technical analysis and approval from the External Financing Commission (Cofiex), linked to the Ministry of Finance,” informed the Tarcísio Government Communications Secretariat.
The loans will be used to invest in the following projects:
- PPP for watercourse crossings: 175 million US dollars or 955.8 million reais
- Expansion of metro line 2-green: 100 million US dollars or 546 million reais
- Management support program and Integration of tax authorities in Brazil – Profisco III: 750 million reais
- PPP extension of Line 6-Orange: 325 million US dollars or 1.77 billion reais
- Sustainable rural development project – Agro Paulista greener: 160 million dollars or 873 million reais
According to the text, the resources will be included as revenue in the state budget or in additional credits. In addition, the Government of São Paulo is authorized, by decree, to open additional or special credits, if it deems it necessary.
For credit operations, State management can rely on guarantee and counter-guarantee mechanisms, including the participation of the Union. Resources must be allocated only to actions specified in the law.
The law also authorizes the procurement of an additional BRL 3.4 billion for mobility works such as the Itapevi-SP corridor, from EMTU (BRL 325 million); Baixada Santista VLT (R$858.9 million); and an additional 2.26 billion reais for the 6-Orange line. However, these contributions were already provided for in the previous law.
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Still according to the Government of São Paulo, the package includes projects whose operations have already been approved and others in the documentary consolidation phase. The financing planned for the coastal passage system and for the Sustainable Rural Development Program has operations approved by the World Bank. Profisco III has an approved operation with the Inter-American Development Bank (IDB).
Civil engineering works on metro line 2-green are underway with the support of the Andean Development Corporation (CAF). The 6-Orange line, according to management, already has authorization legislation. The project, in this case, incorporates the clause that allows additional external financing, also from international organizations.
Alckmin’s “skeletons”
THE Metropolises showed that Tarcísio de Freitas bets on the works inherited from the tucano estate in the State as possible electoral assets in 2026, whether as a candidate for the Presidency of the Republic or in the search for re-election in São Paulo.
Many of them were launched during the administration of current Vice President Geraldo Alckmin (PSB), when he was governor of São Paulo for the PSDB — he was head of state for 14 years — and a political opponent of President Luiz Inácio Lula da Silva (PT).
Among them are the works on Line 2-Green and Line 6-Orange, which will benefit from contributions from authorized loans.
About to enter the final year of his mandate, Tarcísio is seeking to clarify his marks. Among the main “showcases” in this sense, in addition to the metro lines, are the completion of the northern section of Rodoanel, the end of Cracolândia, promoted by the government, and the privatization of Sabesp.
See the delayed works that could be Tarcísio’s electoral asset
- Line 6-Orange — The line will connect Brasilândia, in the northern zone, to São Joaquim station, in the center of São Paulo. According to the government, the route is expected to serve more than 630,000 passengers per day. Tarcísio management promises to deliver the first part of the line, between Brasilândia and Perdizes, in the western zone, during the second half of 2026. The second section, between Perdizes and São Joaquim station, is scheduled to be delivered in 2027. The commissioning of the line was planned for 2012 then 2016. The work was taken over by João Doria (PSDB) in 2020.
- Line 17-Gold — The management of Tarcísio declares that the works on line 17-Ouro of the Monorail are more than 90% complete. Restarted at the start of the current government, the line will connect Congonhas airport to Morumbi station, in the southern zone, of line 9-Esmeralda. Tarcísio has already indicated that commercial operation should begin in the second half of 2026. The start of work on line 17 was authorized by Alckmin in March 2012.
- Extension of Line 2-Verte — Also announced in 2012, the extension of the 2-Green metro line was taken over by Doria in 2020. The works are divided into two sections: one which will connect Vila Prudente to Vila Formosa, in the eastern area of the capital, with four stations. Delivery of this part is scheduled for 2027. The second stage, which will connect Vila Formosa to Penha, is expected to be completed in 2028.
- Santos-Guaruja Tunnel — With the September 5 auction, work on the underwater tunnel that will connect Santos to Guarujá, on the southern coast of São Paulo, is expected to last approximately 5 years. With a shared investment between the state and federal government, the initiative is an old promise. Also in 2013, Alckmin delivered environmental impact studies for the construction of the tunnel. Twelve years later, the former tucano, as vice president of the Republic, organized the auction with Tarcísio at the headquarters of the Stock Exchange.
- Tamoios Contour — Work on the southern contour of the Tamoios highway, which connects the towns of Caraguatatuba and São Sebastião, on the northern coast, was delivered in November last year, more than 10 years after the start of the project initiated by Alckmin. Work was stopped in 2018 and resumed in 2021, under João Doria, after several problems.
- Rodoanel Nord — One of Tarcísio’s main showcases, the completion of the northern section of the Rodoanel was a campaign promise of the governor. In 2025, the initiative ended 9 years of delay. With a length of 44 km, the work began in 2013, under the Alckmin administration, and should be completed in 2016.
- Train Intercidades SP-Campinas — The auction for the construction of the intercity train that will connect São Paulo to Campinas, in the interior of São Paulo, took place in March this year. The proposal gained traction in 2013. The following year, Alckmin even used the project as a campaign promise for his re-election. His successor, João Doria, also spoke about resuming the project during his campaign for the Palácio dos Bandeirantes.
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