Rail and Subway Concessions in Rio de Janeiro: Designing Contracts and Bidding Processes
Author: Jorge M. Rebelo Date: 4/1/1999 (PDF, 200KB)
In early 1995 the Rio de Janeiro state government began reforms aimed at selling or concessioning to the private sector loss-making state-owned enterprises. This Note describes the concessioning of Rio's subway, the Metro, in December 1997 and its commuter rail service, Flumitrens, in July 1998. The reforms were expected to eliminate subsidies for the Metro and reduce them by two-thirds for Flumitrens, to improve service, and to clear the backlog of maintenance and investment.