Brazil signs contract with BNDES for technical studies of highways

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The Ministry of Infrastructure (MInfra) in Brazil and the National Bank for Social Economic Development (BNDES) signed a contract to carry out technical studies related to the structuring of road concessions. The studies will contemplate 15 road stretches in 13 Brazilian states, located in the five regions, in a total of 7,213.7 km, which would represent an increase of up to 71% in the current federal mesh granted. The forecast is that the first results will be presented in the first quarter of 2021 and that the auctions will take place from 2022.

The road sections that will be the object of the studies have strategic relevance for the country's economic development. The enterprises need investments to expand and improve the infrastructure and logistics and transportation services, which can be made possible through partnerships with the private sector, through concession contracts. The first stage of the process was the qualification of the highways with the Investment Partnership Program (PPI), in 2019.

BNDES will provide services in two phases. The first, of pre-feasibility, will be carried out entirely by the Bank and consists of an evaluation of the set of 7,213 km of highways, to subsidize the decision of the Federal Government on which road sections will be studied in the next phase. In the second phase, with the support of specialized consultancies, studies will be carried out to support the structuring of the selected road concessions and the evaluation of possible alternative business models to enhance the feasibility of privatization. The bank also monitors the processes of consultation and public hearing, holding auctions and signing the contract between the public sector and the winning private partner.

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