Brazil approves USD2.8 billion highway concession

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Brazil approves USD2.8 billion highway concession

The Federal Court of Accounts (TCU) approved the concession process for the BR-116/101/SP/RJ highway, via Dutra, on the stretch that connects the cities of São Paulo and Rio de Janeiro. The court also approved the concession project to the private initiative of the BR-101, Rio-Santos, which runs from Santos to Rio de Janeiro. 

Approval by TCU is the last step before publication of the concession notice. In total, the two concessions add up to 625.8 km that will be managed by the winner of the auction, with no date set yet. The event is expected to take place in the fourth quarter of this year.

In total, BRL14.8 billion (USD2.85 billion) are planned for investments by the private sector to expand capacity, with duplication, implementation of third and fourth lanes, marginal roads, among other improvements.

The auction will have a hybrid competition model, which combines a discount on the toll fee and the concession fee. In this format, the notice includes the maximum amount of the rate and a discount ceiling. Whoever offers the highest discount to the user within the allowed ceiling wins the auction. The award value will serve as a criterion for the tie between competitors. The contract duration is 30 years.

TCU also approved the implementation of a proposal that provides for exemption from tolls for motorcyclists. The measure, however, still needs to undergo adjustments in the Technical, Economic and Environmental Feasibility Study (EVTEA), which will be conducted by National Land Transport Agency (ANTT).

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