On April 13, Banco do Brasil signed a credit agreement with the government of the State of São Paulo to provide critical financing for the Santos-Guarujá Immersed Tube Subsea Tunnel project. Under the agreement, Banco do Brasil will grant a 2.5 billion reais loan to the state government with a 23-year term, guaranteed by the federal government, effectively lowering financing costs. The loan interest rate is set at the CDI (Interbank Deposit Certificate Rate) plus 1.59%.

The project entails a total investment of approximately 6.8 billion reais, with 2.5 billion reais funded by the federal government and the remaining 1.7 billion reais raised through a public-private partnership (PPP) model. The signing ceremony was held in São Paulo, attended by Brazilian Vice President Geraldo Alckmin, Finance Minister Dario Durigan, Banco do Brasil President Tatiana Medeiros, and Samuel Kinoshita, State Secretary of Finance of São Paulo.

The project is included in the federal government’s Novo PAC (New Growth Acceleration Program) as one of its largest single-investment initiatives, and also serves as a key transportation infrastructure project for the State of São Paulo. It will deliver Latin America’s first immersed tube subsea tunnel, connecting Santos and Guarujá while passing beneath the shipping channel of the Port of Santos.

Once completed, travel time between the two cities will be slashed from the current one-hour ferry ride to just five minutes, benefiting an estimated 7 million people. The design includes three motor vehicle lanes and a bicycle lane in each direction, which will significantly boost regional traffic efficiency, port logistics capacity, and overall economic vitality.

Politically, the project has become a focal point of bargaining between the federal government and the São Paulo state government. Both the federal administration led by President Luiz Inácio Lula da Silva and Governor Tarcísio de Freitas aim to showcase their governance achievements through the project.

At the signing ceremony, federal government representatives emphasized central support for local development. Governor Tarcísio, who did not attend the event, had previously stated that the state government was willing to independently cover the full investment if necessary to move the project forward. The São Paulo State Secretariat of Finance highlighted the importance of institutional cooperation, noting that despite political differences, all parties remain committed to advancing construction.

Brazil’s Ministry of Finance stated that the successful delivery of such major infrastructure projects relies on coordination between all levels of government, and regards this tunnel as a model for public investment cooperation.