News / MegaProject 1238: Tender launched for US$200 million road project in Brazil

MegaProject 1238: Tender launched for US$200 million road project in Brazil

🕔 April 11, 2018
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The Secretariat of Infrastructure of Bahia, a state in the north-east of Brazil, has launched the tender for the operation, maintenance and revitalization of the BA-052 road, popularly known as the "Bean Route", as well as the construction of a bridge-crossing over the São Francisco River between the municipalities of Xique-Xique and Barra.

The BA-052 is an important route for agricultural production in the west of the state, connecting Xique-Xique to Feira de Santana. The total length to be covered by the concession is 663km. The bridge will be approximately 1km long. It will replace a slow ferry service, which hampers travel and the circulation of goods.

It is thought that the works will benefit around 2.7 million inhabitants in more than 100 municipalities in Bahia.

The successful bidder will sign a 20-year concession contract. The total investment required over the entire duration is estimated to be BRL705 million (US$206.2 million), with BRL289 million (US$84.5 million) investment in the first four years.

BRL54 million in public funds has been set aside for contributions to the concession, to be deployed in two installments in the third and fourth years of the contract. The agreement will also provide for the possibility that the granting authority chooses to substitute the payment of each installment for an increase in the value of the annual payments to be paid until the end of the contract term at a fixed amount determined before the concession commences.

The contract will be awarded to the bidder that proposes the lowest annual payment. Proposals must be presented on 6 June at the headquarters of B3 (formerly BM & FBOVESPA), advisor to the State of Bahia regarding the conduct of the tender, in São Paulo.

The project has also received advisory support from the International Finance Corporation (IFC), which has been involved in its development since 2015.

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