The projected cost for the new administrative center of the São Paulo state government has increased to R$ 6.09 billion, primarily due to expanded garage facilities and other costs.
The government of São Paulo, under the administration of Tarcísio de Freitas from the Republicans party, has reported a significant increase in the projected costs for the construction of its new administrative headquarters, rising to R$ 6.09 billion. This represents a staggering R$ 1.3 billion over the initial budget following preliminary technical studies of the project. The key contributors to this cost increase include the decision to significantly expand the garage facilities for vehicles and adjustments related to expropriation costs and construction in São Paulo's central region.
Originally projected to cost R$ 4.7 billion for a five-year construction timeline based on architectural designs and economic studies from Fipe (Fundação Instituto de Pesquisas Econômicas), the government's forecast has evolved significantly over time. Back in March 2024, before these documents were finalized, the expectations were much lower, around R$ 3.9 billion. The final estimate now stands 56% higher than that initial projection, raising concerns about budget management and project planning within the state administration.
The implications of this budget increase extend beyond mere fiscal concerns, potentially affecting future governmental budgeting strategies and public perception regarding the efficient allocation of resources. A key auction scheduled for this Thursday, which will involve the São Paulo Stock Exchange (B3), aims to select a company group for the construction, marking an important step in proceeding with this large-scale infrastructure project amidst these rising costs.
