São Paulo expands electric bus fleet
Fleet electrification is already well underway in the municipality, which reportedly has 527 electric vehicles currently deployed as part of its public transport network. What’s changed is the loan financing from the IDB, which will now support not only fleet electrification but the management and coordination of the bus system itself under SPTrans, the city’s public transport authority. At present, São Paulo’s bus system is comprised of over 12000 vehicles, 1300 bus lines, 20,000 stops – and consumes roughly 400 million+ liters of diesel per year, at least according to transport provider SPTrans data. Electrifying a network this large is no mean feat, and explains why the loan is for such a significant amount of money.
The IDB loan itself has a 15-year term with a 6-year grade period, with an interest rate based on the Secured Overnight Financing Rate (SOFR). The funding will be released following legal formalities and after contracts are signed. It will target 7 millions bus riders in São Paulo itself as well as 11.5 million residents of the municipality and 21.5 million people located in the wider Metropolitan Region. The Inter-American Development Bank (IDB) says the program will target low-income citizens and women, i.e. the majority of the city’s public transport users.
Annette Kilmer, the IDB’s representative in Brazil, said: “It is a central part of the IDB’s support strategy for Brazil to promote initiatives like this one, which allow us to advance environmental and social issues at the same time. More efficient, punctual and cleaner public transportation is also an important vector for combating inequalities, and it is an honour to support the city of São Paulo in this agenda.”
The expanding electrification of São Paulo’s bus fleet follows a ruling in 2022 which saw SPTrans ban bus companies from purchasing new diesel buses in the city. This came as the city attempted to comply with climate protection laws introduced nationally.
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