Brazil's Bahia state government is planning a PPP project consisting of a port terminal concession in the state's Porto Sul complex, located in the city of Ilhéus. The concession will benefit cargo companies interested in setting up new operations in the state.

Several sources indicated that two public hearings are scheduled next week (Dec. 16-20), one in Ilhéus and the other one in the city of Itabuna. Later a public consultancy phase will be opened sometime in January and a tender process is expected to be launched in March.

The project total cost is estimated at R$3.5 billion (US$1.5 billion). Sources said the state will have a minority stake in the SPV, but it will have special voting rights.

In order to transport 19.5MT/year of iron ore from city of Caetité to Porto Sul, Bamin, a local miner, has already closed a deal at the new complex.

Brazil's special ports department (SEP) is planning to develop 15 PPP projects with a budget of about R$6.4 billion (US$2.75 billion). The concession for five new terminal have already been authorized, and there are another 10 in the final stage of evaluations.