Galvao Engenharia wins toll road concession in Brazil

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Galvao Engenharia wins toll road concession in Brazil

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Brazil's national ground transport agency ANTT has selected the local firm Galvão Engenharia as the preferred bidder for the concession of federal highway BR-153 running through the states of Tocantins and Goiás.

The firm, which offered to charge 45.99% less than the maximum toll proposed by the government, beat out competition from the consortium Norte-Sul, formed by EcorodoviasQueiroz Galvão and Coimex (offered 21.49% discount), and the firm Triunfo Participações e Investimentos  (offered 0.99% discount).

Credit Suisse said last week that friday's auction was less attractive than previous road tenders that attracted between six and eight bidders because the BR-153 runs parallel to the North-South Railway, which may eventually compete with the road as a means to transport soy and corn to new ports being built in northern Brazil.

The concession contract will have a period of 30 years. The total project cost during the life of the concession contract is estimated at R4.31 billion (US$1.92 billion). The contract involves maintenance, operation, implementation of improvements and capacity expansion of the road segment.

The road stretch is 624.8 km long and passes through 23 municipalities. The segment begins at the junction with the BR - 060 in Annapolis (Goiás) and ends at the junction with the TO- 070 highway in Aliança do Tocantins. The system will feature nine toll plazas.

In early May, Brazil's São Paulo state, through the state transportation agency of São Paulo (ARTESP),  re-launched  the tender process for the Rodovia dos Tamoios highway PPP project. The estimated total project investment is approximately R$ 3.9 billion (US$1.75 billion) and the concession period will be 30 years.

In early April, the consortium Consórcio Rota 323, led by Odebrecht Transport Participações S.A. was the only bidder in the opening of bids for the state highway PR-323 PPP project in Paraná (Brazil). The PPP project has an estimated investment of R$3.6 billion (US$1.52 billion) during the 30 years of the concession contract.

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