International tender for USD 3.7 billion road concession in Brazil

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International tender for USD 3.7 billion road concession in Brazil

Transport Agency of the State of Sao Paulo (Artesp) in Brazil has announced the international competition for the concession of Piracicaba - Panorama road, with investment forecast of BRL 14 billion (USD 3.7 billion) in works to be carried out over 30 years.

In total there are 1,273 kilometers of highways that will be modernized and expanded between the city of Piracicaba, in the Campinas region, and the municipality of Panorama, in the far west of the state. Of the BRL 14 billion (USD 3.7 billion), about BRL 1.5 billion (USD 396 million) will be invested in the first two years of the contract.

The Piracicaba - Panorama road project consists of the 218 km network which is currently operated by the Arteris Group's Centrovias concessionaire, whose contract expires early next year, in addition to 1,055 kilometers operated by DER-SP (Departamento de Estradas de Rodagem de Sao Paulo).

The scope of work of the project includes building additional lanes, shoulders, news access points, pavement recovery, walkways and bike paths among other works that will improve the flow and road safety.

The project will also be the first Zero Carbon Highway in the country. The concession provides for offsetting carbon dioxide emissions from operating services. Emissions will be assessed and should be offset by generating clean energy or acquiring carbon credits. The entire process will be certified by accredited companies and will create an environment in which the concessionaire will seek sustainable solutions, such as the use of vehicles and equipment with clean energy operation services; solar-powered toll plazas and lighting, among many other practices.

The concessionaire will equip the roads with dedicated Wi-Fi (wireless data network) throughout the network to provide the user with information about the system, for example updating the traffic situation and enabling medical and mechanical distress triggering. The highways will be fully monitored by smart cameras and there will be moving weighing for vehicle surveillance.

International competition may include domestic companies, foreign companies, investment funds, private pension entities - alone or in a consortium. The criterion for judging the bid will be the highest fixed grant value.

Proposals will be presented in November and the contract is expected to be signed and the new concessionaire will start operating the concession in the first half of 2020.

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