Type of Agreement: Concession
Object: Concession with consideration for the use of Interlagos Complex for refurbishment, management, maintenance, operation and exploitation.
Bidding Mode: International Public Tendering
Concession Term: 35 years
Decision-Making Criteria: Highest offer of fixed concession granting fee for concession operation.
Technical qualification required: For the purposes of technical qualification, the following documents must be submitted:
- a. Certificate(s) of technical professional competence, evidencing that the BIDDER has experience as a Race Track and/or Kart Track operator and has hosted at least one official competition approved by FIA and/or CBA or FIM and/or CBM; and
- b. Certificate of technical-operational competence, evidencing that the BIDDER has economically operated, managed any multipurpose enterprise or has held events with capacity at least ten thousand (10,000) people.
Transition Period: The Operational Management Transfer will last 30 days counted as from the date of start-up order. During this phase, the concessionaire shall subrogate the agreements of events entered into with PMSP and operating agreements. However, during this period both parties will have access to the structures of the complex in order to carry out their respective activities.
Fixed Concession Granting Fee: R$ 198,640,012.00
Variable Concession Granting Fee The variable concession granting fee will be calculated on yearly basis, at the rate of 9.00% of gross revenue, with a minimum amount of R$ 10 million. In addition, if the concessionaire allows PMSP to preferentially use the Complex area, the variable concession granting fee discount mechanism will be triggered, which will be calculated pursuant to the days assigned and the average net ticket of the object.
Payment terms: The fixed concession granting fee may be paid in cash or in installments and, in the latter case, the first installment shall be paid upon signature of the agreement and the last one by December 2020.
Preceding Obligations for the execution of the agreement: Incorporate Special Purpose Entity (SPE); settle the payment of the fixed concession granting fee and submit all necessary documentation within 5 business days before the execution of the agreement.
What is the status of the equipment and/or service (prior to concession)?
Interlagos Complex has 901,617.40 m², with equipment such as: race track, kart track, off-road track, perimeter support track and green areas, arenas and administrative building. Currently, the area is recognized as a sports and leisure center, with focus on motor sports and diversified uses throughout each year.
The last refurbishment of the area took place between 2013 and 2016, creating new boxes on “Reta Oposta”, altering the circuit and building a new operational control tower.
How does the service operate today?
Interlagos Complex is recognized as a sports and leisure center, focusing on motor sports and diversified uses throughout the year. The potential of this equipment can be further exploited by implementing interventions to improve infrastructure, optimize simultaneous use, and incorporation of associated enterprises with synergy with leisure activities already developed in the area.
What are the differentials of the new service?
The future concessionaire will be responsible for the operating costs and expenses as from the start-up order date and for the entire term of the agreement, and shall perform the refurbishment, management, maintenance, operation, exploitation and modernization of the Interlagos Complex. To this end, the future concessionaire will be able to operate the Complex to hold sporting events and competitions, as well as build associated enterprises to earn ancillary revenues.
What investments will the private company be required to make and in which period?
The future concessionaire will be required to modernize, recover, review and reset all systems in the complex, including electrical, hydraulic, sewage, drainage, telecommunications, information technology and air conditioning systems. It is noteworthy that, to carry out interventions in the area, the interested party shall obtain all necessary approvals, licenses and/or permits.
In addition, refurbishments are also expected to the kart track, dressing rooms, implementation, refurbishments and restoration in the perimeter area, installation of auxiliary boxes, works in the “Retão”, rehabilitation of the entrances, final sewage, earthworks and signaling and visual communication.
All the above actions, provided for in the Intervention Program, must be implemented by the
concessionaire within 36 months.
How soon will the private company take over the service (transfer of activities to the new concessionaire)?
Interlagos Complex will be taken over by the concessionaire after the start-up order date, with a transition of up to 30 days.