São Paulo state to offer US$1.3bn Nova Raposo highway concession in November

São Paulo state scheduled the auction for the 30-year Nova Raposo highway concession, demanding investments of 7.3 billion reais (US$1.3bn), for November 28, as more such contracts will be offered in coming months.

"The bidding for the stretch will be in concession mode, with the criteria for selecting the winner being the largest fixed grant paid to the state – the minimum value stipulated in the notice is 60.7 million reais," the state said in a press release.

Interested parties must submit initial proposals on November 25 to the B3 stock exchange, with local and international companies or consortiums allowed to bid.

The concession for the 92km route which will connect 10 cities also includes investments in widening and new marginal roads.

Nova Raposo is currently operated by concessionaire ViaOeste. The notice and other documents can be seen here, in Portuguese.

Meanwhile, São Paulo state will offer two more highway contracts and the federal government three.

"The highway concession contracts in São Paulo state attract more competitors due to some factors. The São Paulo model is robust and has a consolidated history and the demand is reasonably known. Therefore, the economic and financial equation is more palpable," Paulo Dantas, an infrastructure and project financing specialist at law firm Castro Barros Advogados, told BNamericas

"Regarding federal highways, there are still doubts about economic viability despite advances in proposed modeling. I believe that at the federal level there should be competition in general, but with different players, such as new entrants or those seeking to consolidate positions," added Dantas.

CONFIRMED AUCTIONS

On August 29, the federal government will offer the 30-year concession for a 303km stretch of BR-381 between Belo Horizonte and Governador Valadares in Minas Gerais state. The contract comprises investments of around 9.2bn reais.

The auction for the 30-year concession of the 595km Rota dos Cristais stretch of the BR-040/GO/MG highway between Belo Horizonte and Cristalina in Goiás state, involving 12bn reais, is planned for September 26.

São Paulo state will offer the 30-year, 8.7bn-real Rota Sorocabana highway concession, covering a 460km route connecting 17 cities, on October 30.

And on October 31, the federal government will reoffer the 8.5bn-real concession for the BR-262 highway in Minas Gerais state. The main works as part of the 30-year concession include widening 44.3km, building 169km of additional lanes and 3.63km of side roads, along with 10 viaducts and 17 footbridges.