São Paulo government opens supplementary credit for Santos-Guarujá tunnel

Two days after TCU blocked R$ 2.6 billion in federal funding, São Paulo's government issued a decree opening supplementary credit of a similar amount for the Santos-Guarujá tunnel project. Governor Tarcísio de Freitas signed the document, supplementing the budget of the Secretariat for Partnerships in Investments. The step ensures the project's continuity, scheduled to start this year.

São Paulo's state government responded swiftly to the Court of Accounts of the Union (TCU) block on March 18, 2026. On Friday, March 20, it published a decree in the Official Gazette opening supplementary credit of R$ 2.639 billion to support the public-private partnership (PPP) for the immersed tunnel between Santos and Guarujá. This amount matches what the Santos Port Authority (APS), a federal entity, was set to contribute before the TCU block under rapporteur Minister Bruno Dantas. The TCU cited lack of legal instruments for federal transfers, weaknesses in coordination between the Union and São Paulo state, and APS's exclusion as a consenting party in the contract with the Mota-Engil-led consortium, winner of the September 2025 auction. São Paulo's government countered that the contract draft was public since the bidding notice. With a total investment of about R$ 5.2 billion, the state was already covering half; the decree now formally budgets for 100% if needed. The construction timeline is unchanged, with works set to begin in 2026. The project is part of the federal New PAC and Governor Tarcísio de Freitas's (Republicanos) Partnerships in Investments program, amid tensions between state and federal executives ahead of an election year.

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