News / MegaProject 109: Brazil launches US$3 billion road concession tenders

MegaProject 109: Brazil launches US$3 billion road concession tenders

🕔 October 23, 2013
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Brazil's national ground transport agency ANTT has launched two 30-year highway concession tenders with an initial investment of R$6.3 billion (US$3 billion) to expand, restore, maintain and operate 2,028km of highways, the agency said on its website.

One of the highway  involves 1,177km of highway stretches along BR-060, BR-153 and BR-262, passing through the Federal District and the states of Goiás and Minas Gerais. The contract has an investment during the first five years of R$3.98 billion (US$1.9 billion). The project involves installing 11 tollbooths and widening 648km of highway stretches before the fifth year of the concession.

The other tender, with an investment during the first five years of R$2.38 billion (US$1.13 billion), involves an 851km segment of BR-163 in the state of Mato Grosso. It will have nine toll booths and entail widening 454km of the highway, also before the fifth year of the concession.

Brazil's transportation minister guaranteed that coming concessions of highways will attract bidders. However, Arteris SA Chief Executive Officer David Diaz said in an interview with Bloomberg, that Brazil's road auction plans, part of President Dilma Rousseff's $98 billion effort to spur growth, are flawed because traffic estimates are too high and cost projections low.

Brazil's failure to attract bids for the BR-262 highway shows companies are hesitant about potentially unprofitable projects, said Diaz, who became CEO after the nation's third-largest toll-road operator was bought last year by Brookfield Infrastructure Partners LP and Abertis Infraestructura SA. The government may have to offer more attractive terms, he said.

Tender documents:

Schedule:BR-163:
  • Deadline for submission of questions: 28 October 2013
  • Deadline for submission of proposals: 25 November 2013
  • Opening of proposals: 27 November 2013
BR-060, BR-153 & BR - 262:
  • Deadline for submission of questions: 1 November 2013
  • Deadline for submission of proposals: 2 December 2013
  • Opening of proposals: 4 December 2013



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