The Government of the São Paulo State has negotiated a loan contract, in the amount of US$ 34 million, with the Inter-American Development Bank (IDB) to cover part of the cost of the APrograma de Ação em Cortiços@, a four-year program aimed at enhancing the dwelling conditions of the low-income people living downtown in the biggest cities of the State.

The Companhia de Desenvolvimento Habitacional e Urbano do Estado de São Paulo S.A. (CDHU), the execution agency for the program, will contract consulting and engineering services and purchase goods to implement the program, according to the Brazilian Law No. 8666 and the loan contract (annexes B and C). The bidding schedule will be as follows (with due dates indicated):

• General management and social support to the families, through international competitive bidding (ICB) with pre-qualification, following the IDB=s Rules for Consultants= Selection: first semester 2002
• Acquisitions of goods and services for the Program General Administration, through national Brazilian bidding (NBB): first semester 2002
• Monitoring and auditing (NBB): second semester 2002
• Sector urban design development (NBB): first semester 2002
• Architectural and engineering designs (NBB): first semester 2002
• Diagnosis of São Paulo State Housing Policy and Recommendations for its improvement (NBB): second semester 2002
• Consulting services for CDHU=s organizational review (ICB with prequalification, following the IDB=s Rules for Consultants= Selection): first semester 2003
• Low-income families housing leasing guaranty fund viability study (ICB with prequalification): first semester 2003
• Program publicity campaigns, seminars and congress organization (ICB, bid preapproved shortlist): first semester 2002

Specific procurement notices for contracts to be bid under the NBB procedures will be announced, as they become available, in Brazilian newspapers of great circulation and, in the case of ICB procedures, in international publications. Bidding is open to all companies, national and from the IDB=s members countries, isolated or in association.

For additional information, please contact:

Program Executing Unit Coordination

Companhia de Desenvolvimento Habitacional e Urbano. do Estado de São Paulo S.A.

Av. 9 de Julho N° 4939, 10° Andar

CEP 01407-200 São Paulo, SP, Brazil

Tel: (55-11) 3068-2505. Fax: (55-11) 3167-1399

E-mail: hafanasieff@cdhu.sp.gov.br, etrani@cdhu.sp.gov.br