PPI

MEZ-RZK Consortium wins auction for the Public-Private Partnership of São Paulo’s New Administrative Center

Winning bid offers a 9.62% discount on the maximum monthly public payment; 30-year contract with total estimated investment of R$ 6 billion

The Government of São Paulo held, this Thursday (26), at B3 (São Paulo Stock Exchange), the auction for the Public-Private Partnership (PPP) of the New Administrative Center. The winner was the MEZ-RZK Novo Centro consortium, which submitted a bid offering a 9.62% discount on the maximum monthly public payment, set at R$ 76.6 million. The other bidder, the Acciona-Construcap Consortium, offered a 5% discount.

“The downtown project is about building a lasting legacy. This, which was the first planned neighborhood in São Paulo, was originally created to serve the coffee aristocracy, and over time it deteriorated. It became a degraded area and people moved away. We needed to align public policies—health, social assistance, public safety, housing—along with a significant and transformative investment,” said Governor Tarcísio de Freitas. “We are going to give the city back to the people. We are going to restore dignity to downtown São Paulo. The impact will be enormous, and downtown São Paulo will never be degraded again,” he added.

With estimated investments of R$ 6 billion, the project includes the construction of seven buildings and ten towers in the Campos Elíseos district, in central São Paulo. The complex will house the Governor’s Office, as well as state secretariats and agencies currently spread across more than 40 addresses throughout the city.

The initiative will increase efficiency in public management, reduce administrative expenses, and drive urban revitalization in the city center, while preserving historic heritage and expanding public services. The new structure will accommodate approximately 22,000 public servants and will include a theater, auditoriums, multipurpose rooms, and other facilities.

“We all came together around an idea that became a project and won everyone’s support. We will restore São Paulo residents’ connection to downtown and provide proper attention to the population living in the area,” said Guilherme Afif Domingos, State Secretary for Strategic Projects.

The project also includes the restoration of 17 listed heritage properties and an expansion of more than 40% of the green areas of Princesa Isabel Park. The area will feature 25,000 square meters dedicated to commerce and services, strengthening urban development and the local economy, as well as the construction of a new bus terminal to improve urban mobility in the capital.

The new buildings will receive international LEED Gold certification and incorporate energy, thermal, and environmental efficiency solutions. The project is expected to generate 38,000 jobs during the construction phase and 2,800 formal jobs in local commerce and services.

“The New Center project marks the structured revitalization of the region, with a focus on efficiency, administrative modernization, and better use of public resources. The proposal is to reorganize structures, optimize teams, and improve service delivery, ensuring efficient service to citizens,” said Rafael Benini, Secretary of Partnerships and Investments.

The concession, structured by the Secretariat of Partnerships and Investments (SPI) with technical support from Companhia Paulista de Parcerias, will have a 30-year term. The winning proposal offered the highest discount to the State, ensuring cost-effectiveness and operational predictability. The Government will make payments as provided in the contract, based on the concessionaire’s performance, to guarantee the project’s financial sustainability. The company will be responsible for operating and maintaining the complex throughout the concession period, including cleaning, security, and maintenance services.

“We are very proud to take part in this downtown revitalization project. We will do everything possible to move this forward as quickly as possible,” said Felipe Mahana, director of M4 Infraestrutura, one of the companies in the winning consortium.

During the bidding phase, the project included broad public participation. Two public hearings were held in February 2025, with more than 80 statements, and a public consultation received more than 268 contributions between January and March, all of which were analyzed and incorporated into the final project model.

The architectural design is another highlight of the project. It was selected through a national public competition organized by the Brazilian Institute of Architects – São Paulo Department (IAB), which recorded a record number of entries. The winning proposal was submitted by Ópera Quatro Arquitetura, which will be responsible for preparing the basic and executive designs.

Public approval

The relocation of the Administrative Center to the heart of the capital also has strong public support. A Datafolha Institute survey, which interviewed 1,564 people in the city, revealed that 83% of residents or workers in the central region believe the area will become safer. Respondents also expect improvements in urban cleanliness (80%), job opportunities (74%), regional tourism (70%), and housing conditions (55%).

Among the city’s overall population, 64% of São Paulo residents consider the move excellent or good, and 77% believe security conditions will improve. Additionally, between 79% and 84% assess that the project brings more benefits than drawbacks for residents, business owners, workers, and the city as a whole.