Possibility of work delays gains strength as government disputes Santos tunnel project authorship

A disagreement between São Paulo governor Tarcísio de Freitas and Brazilian President Luiz Inácio Lula da Silva, along with a dispute over the authorship of the long-expected tunnel between Santos and Guarujá, threatens to delay the project that could benefit 40,000 drivers per day in the region.

On one side, the federal government would like to develop the project with less private sector involvement and without granting management rights to São Paulo state, which wanted to use national resources to fund its share of the construction effort. On the other hand, the state government advocates for a Public-Private Partnership (PPP) with broader private-sector participation. It also argues that the Federal Government’s plan would require a new executive project and a new environmental license application, causing delays in its execution.

Amid technical disputes, political factors emerge on both sides. Allies of Tarcísio argue that the Union wants to control the project alone to pave the way for a potential return of Geraldo Alckmin, Brazil’s current vice-president, to the state government in 2026. In turn, federal government representatives complain about recurrent delays on the part of São Paulo in issuing an environmental license update in an alleged attempt to keep the Union from undertaking the project alone. Disagreements over the Ministry of Ports and Airports have heightened tensions within the Republicanos political party, of which Tarcísio and Minister Costa Filho are both members.

The state government claims to be able to move forward with its own tunnel project while simultaneously promising to issue the necessary permits for the project to take place through the Growth Acceleration Program (PAC), as the federal government desires. When asked to comment by the Estado de S. Paulo press agency, the São Paulo state government reassured having the fundraising availability to carry out the project. It also commented that the federal administration has not requested a new prior license to carry out the project since the plan’s last modification in 2014. The Ministry of Ports and Airports has not yet commented.

The construction of a dry connection venue between Santos and Guarujá has long been in demand in the region. Currently, a 43-kilometer road stretch connects the two cities. Another option for drivers is to take a ferry, which entails a variable waiting time depending on weather conditions and vehicle flow. The underwater tunnel would be only 1.7 kilometers long, fixing the mobility bottleneck between the two cities. To achieve this, the tunnel would have to be 20 meters deep below the Santos channel in order not to disrupt ship traffic in the area. The draft currently required for vessels crossing the area is 15 meters and should soon reach 17 meters. The tunnel is projected to feature three lanes in both directions, and it will also provide integration with a light rail vehicle (VLT), cycle path, and urban passage. Studies point out that approximately 40,000 people would use the submerged crossing per day, reducing travel time by 25 minutes compared to the ferry crossing.

The imbroglio gained momentum about two weeks ago when the Chief of Staff, Rui Costa, called the São Paulo government to inform them that the then-existing agreement to develop the project in partnership had been undone, and the Union would undertake the task independently. The São Paulo Partnerships and Investments Secretariat (SPI), although having enough fundraising availability, intended to get a loan from BNDES to cover the R$2.7 billion fund its share of the project, which the Federal Government didn’t take lightly. Since then, Tarcísio’s aides have been reminding that although the Port of Santos, the onset of the tunnel, is under federal jurisdiction, the project relies on obtaining a license from the Environmental Company of the State of São Paulo (Cetesb).

To move forward with the project, dredging the port channel is necessary. Because of this, in June of last year, the President of the Port Authority, Anderson Pomini, sent a letter to the state company requesting access to technical deliberations, budget spreadsheets, an executive project, and “environmental licenses duly renewed” to advance the project. However, no response has been received to date.

Furthermore, some aides argue that the authority to issue environmental licenses for works undertaken within the port’s polygon would lie with Ibama, especially when it involves a large volume of sediments dredged, which is the case for the tunnel construction. The state government, in turn, contests this interpretation.

Political Dispute

In the view of Lula’s allies, the São Paulo government wants to disrupt the process due to frustration over being unable to claim the tunnel’s paternity. On the other hand, São Paulo fears a move to rehabilitate Vice President Geraldo Alckmin in São Paulo politics. They point to the vice president’s relationship with Pomini, affiliated with Alckmin’s party (PSB), who remained in office even after the change of command in the Ministry of Ports and Airports in September of last year when Márcio França gave way to federal deputy Sílvio Costa Filho (Republicanos party). The Vice Presidency was contacted to comment on the case but declined to respond.

In 2014, when he was governor of São Paulo, Alckmin designed a tunnel project through Dersa, a São Paulo company that was liquidated during João Doria’s administration. However, the idea was set aside due to budget constraints during the economic crisis of the following years.

Tarcísio’s allies now see the project as an ace for Alckimin’s eventual campaign in 2026. They also criticize Costa Filho, who belongs to the same party as the governor, from whom they expected more proactivity to find a solution to allow the state’s participation in the project. According to them, the imbroglio has generated tension between Tarcísio and the party’s leadership, of which he is the top political figure.

A similar project was also part of the governor’s agenda in the past. As Minister of Infrastructure in Jair Bolsonaro’s administration, he included the project in a port privatization plan. With Lula’s election, this port privatization alternative was discarded, making Tarcísio’s original idea unviable.

São Paulo administration wants old project

The São Paulo government claims that, in December of last year, it hired Fipe to update the project carried out by Dersa, with the aim of holding a concession tender in the second half of this year. It had also already signed the technical cooperation agreement that would allow the creation of a working group with the Ministry of Ports and Airports, the Port Authority of Santos, the National Waterway Transportation Agency (Antaq), and the São Paulo State Partnerships and Investments Secretariat to create a working plan.

Tarcísio’s government also argued that it had been working with the federal government to make the project viable since the project’s qualification in the PAC was “sending all documents produced internally to launch the PPP.”

According to the state, since the only existing executive project for the tunnel was developed by Dersa, the federal government would need to prepare a new project to make construction feasible by 2025, extending the deadline to deliver the works. “In addition, the state government’s project includes the Light Rail Vehicle (VLT),” explained the state.

Also, according to the state government, the project that the São Paulo government had already submitted envisaged investments of R$ 5.96 billion, with R$ 2.7 billion in public contributions from both administrations and private sector participation through a PPP. “In this way, a public consultation could have been opened as early as 2023,” says the government.

Source: O Estado de S. Paulo

Click here to read the original text in Portuguese: https://www.estadao.com.br/politica/briga-entre-governos-tarcisio-e-lula-pode-atrasar-obras-do-tunel-que-ligara-santos-e-guaruja/

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