World Bank Backs São Paulo Metro Expansion to Boost Equity and Climate Goals

In a major leap toward equitable and sustainable urban development, the World Bank Board of Directors has approved a US$400 million investment to support the extension of São Paulo’s Metro Line 4 to the neighboring city of Taboão da Serra. This landmark project will expand the metro system beyond São Paulo’s municipal limits for the first time, setting a precedent in Brazil for inclusive mobility, green infrastructure, and public-private cooperation.

The US$893.6 million project—co-financed by the State of São Paulo and private sector partners—aims to enhance access to jobs, services, and opportunities for thousands of residents in a historically underserved region, while reducing traffic congestion, air pollution, and climate vulnerability in one of Latin America’s largest cities.

A Social and Economic Game Changer for Low-Income Communities

The metro extension is expected to benefit around 50,000 daily passengers by 2030, many of whom live in Taboão da Serra, a municipality where average incomes are up to 70% lower than in central São Paulo. Approximately 71% of local residents earn two minimum wages or less, making affordable, reliable transportation a critical lifeline for social mobility.

“Extending the metro beyond the city limits is more than an infrastructure project, it’s a social and economic transformation,” said Rafael Benini, São Paulo’s State Secretary for Partnerships and Investments. “We are building a transportation system that is modern, sustainable, and fully integrated with the needs of the metropolitan region.”

First World Bank–Financed Project to Be Executed by a Private Concessionaire

In an innovative move, this project marks the first time a private concessionaire will directly implement a World Bank–financed project in Brazil. The delivery model leverages the strengths of public-private partnerships (PPPs) to ensure faster execution, better risk-sharing, and performance-driven implementation.

The initiative builds on the highly acclaimed earlier phases of Metro Line 4, recognized as one of the most efficient and technologically advanced urban transit systems in Latin America.

“By connecting Taboão da Serra to the metro network, the project helps bridge social and spatial divides,” said Jorge Coarasa Bustamante, World Bank Operations Manager for Brazil. “It’s also a blueprint for sustainable and inclusive infrastructure delivery in complex urban settings.”

Green, Resilient Infrastructure for the Future

The 3.3-kilometer extension will add two new stations, featuring:

• Universal accessibility for persons with disabilities

• Driverless train technology with state-of-the-art signaling

• Platform screen doors to enhance passenger safety

• Flood-resilient design features to counter climate risks

• Seamless integration with local bus systems for multimodal transit

The project is fully electrified and is projected to avoid approximately 650,000 tons of CO₂ emissions, contributing directly to São Paulo’s climate goals and aligning with Brazil’s national commitments under the Paris Agreement.

Strategic Capacity Building and Inclusion Components

Beyond physical infrastructure, the project will support institutional development and social inclusion, including:

• Strengthening the capacity of São Paulo’s transport regulatory agency (ARTESP) to oversee complex PPP contracts

• Gender-focused safety and accessibility features for women and vulnerable passengers

• Job creation across sectors, from construction and engineering to transit operations, technical oversight, and digital infrastructure development

• Introduction of digital monitoring tools to support more efficient project management and accountability

This holistic approach aims to maximize social impact while delivering a new benchmark in project execution and oversight.

Advancing Brazil’s Sustainable Development Agenda

The Metro Line 4 extension is part of a broader World Bank Series of Projects to promote green, resilient, and inclusive mobility in Brazil’s major urban centers. It supports the Country Partnership Framework (CPF) and aligns with São Paulo’s mobility and climate strategies, reinforcing the state’s leadership in sustainable transportation, innovation, and social equity.

This project also provides a replicable model for other Brazilian cities looking to expand urban infrastructure through private sector partnerships, ensuring that investments are climate-smart, people-centered, and future-ready.