Minas Gerais launches tender process for ring road PPP

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Minas Gerais launches tender process for ring road PPP This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Government of Minas Gerais, Brazil, launched on June 25th the tender process for the Rodoanel Norte highway public private partnership (PPP).

The project is the northern stretch of the metropolitan ring road. It will cross 8 cities (Sabará, Santa Luzia, Vespasiano, São José da Lapa, Pedro Leopoldo, Ribeirão das Neves, Contagem e Betim) and it is considered one of the greatest works of the metropolitan area of Belo Horizonte. It will have a length of 66 Km.

The road stretch will link the BR-381 highway, at the junction with the exit to Sao Paulo, and the BR-040 highways, at the junction with the exit to Brasília. Travel time between Betim and Ravenais expected to decrease from 60 to 36 minutes.

The contract term is 30 years and the estimated value of the investment is R$4 billion (US$1.81 billion), including land acquisition costs. The federal government will contribute with R$800 million (US$363 million) to the project. Land acquisition costs add a total of R$550 million (US$249 million).

The deadline for submissions of proposals is August 18th

The winner will be the firm or group of firms that offers the minimum monthly payment from the government.

The Minas Gerais state government expects to sign the PPP contract  before year end so that the works can start at the beginning of 2015. It is expected that the work take four years to be completed.

According to the government plans, tolls will be charged on the Rodoanel Norte highway, with prices varying between R$ 4,10 and R$ 7,10. Free flow toll booths will be installed to detect cars that will carry electronic tags.

Download tender documents:

http://www.transportes.mg.gov.br/Concorrencia_publica_2014.html

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