Santos-Guarujá tunnel moves forward amid tensions between governments

Brazil’s federal government is expected to sign on Monday (April 13) the credit operation that will secure half of the public funding contribution for construction of the immersed Santos-Guarujá tunnel. The funds have already been deposited by the São Paulo state government, which is also contributing financially to the project.

The ceremony comes amid friction between the two levels of government. Behind the scenes, officials said invitations to the event were sent on Friday (April 10) evening.

Total planned investment stands at 6.8 billion reais, of which 5.2 billion reais will be funded by the public sector, half by the federal government and half by the São Paulo state government. The deposit made by São Paulo in March corresponds to its share of the financing.

The political atmosphere, however, remains tense. The São Paulo state government has accused Brasília of trying to claim ownership of the project and views the ceremony as politically motivated. The federal government, by contrast, says the event symbolizes coordination and cooperation between the two sides.

Beyond the institutional dispute, the project has also faced technical hurdles. In March, Brazil’s federal audit court, the TCU, ordered a temporary suspension of federal transfers that were to be made by the Santos Port Authority, or APS, for the project.

With the formalization of the credit operation, the port authority expects the court to release the funds to the escrow account later this week, even amid remaining disagreements over project governance.

According to APS, the TCU’s involvement is intended to provide legal certainty to Mota-Engil, the consortium that won the tender, and to avoid risks of delay in the project schedule. The company won the auction held in September 2025.

The tensions are not new. In January this year, the São Paulo state government signed the project contract without the participation of the port authority, which at the time pointed to inconsistencies in the document and requested adjustments.

Considered one of the most anticipated infrastructure projects in the region, the link between Santos and Guarujá is expected to cut travel time between the two cities to about five minutes. The official schedule calls for construction to begin in January 2027, with operations starting in 2031.

The escrow account will be operated by Banco do Brasil, and the event is expected to be attended by officials including Vice President Geraldo Alckmin, Finance Minister Dario Durigan and São Paulo Finance and Planning Secretary Samuel Kinoshita, as well as the São Paulo governor. APS President Anderson Pomini is not expected to attend because of scheduling commitments.

Source: CNN Infra

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