Brazil's state-owned petroleum giant Petrobras opened a bid Thursday for construction of 42 oil tankers to be built for an estimated $1.9 billion.
The first phase of the project aimed at building 22 tankers will cost about $1.1 billion and a second phase to build 20 more will cost $800 million.
Bids for the first tankers are due by Jan. 31 and the bidding process should be completed in time for deliveries to begin in 2006, Petrobras said. The ships will be used to transport crude oil and liquid petroleum gas on domestic and international routes.
Brazil's National Development Bank will finance up to 90 percent of the construction costs with 20-year loans, and charge an annual interest rate of 4 percent, as part of its plans to redevelop Brazil's naval industry.
Petrobras had been planning to buy the ships for several years, but faced opposition from politicians who didn't want the contracts to be awarded to foreign shipyards.
