Brazil facing difficulties to achieve highway auction goal

Brazil’s goal of offering 13 highway concession contracts this year seems increasingly out of reach, as only one bidding process has been held so far, although dates for two more have been set.

"It will be very difficult for the government to manage to hold 13 auctions of highway concession contracts this year because the fiscal scenario is generating uncertainty for long-term investors and right now there aren't many companies with the capacity to take on so many contracts," Frederico Araujo Turolla, an infrastructure specialist and partner at consultancy Pezco, told BNamericas.

In April, local infrastructure group EPR Participações won the concession for a 232km stretch of highway BR-040, which involves projected investments of 8.7 billion reais (US$1.7bn) to operate and improve the route. The stretch links Minas Gerais state capital Belo Horizonte and Juiz de Fora.

Meanwhile, the government will offer a concession for a 303km stretch of highway BR-381 between Belo Horizonte and Governador Valadares on August 29. The 30-year contract comprises investments of up to 9.2bn reais.

And on September 26, the government will hold a bidding process for a concession for the 595km Rota dos Cristais stretch of the BR-040/GO/MG highway between Belo Horizonte and Cristalina in Goiás state. The projected investment for the 30-year concession is 12bn reais.

Land transport regulator ANTT is also advancing other highway concessions.

“Two projects are currently undergoing adjustments following analysis by the federal audit court (TCU). One of them is the Zebu route, which comprises 438.9km of BR-262/MG between Uberaba and Betim. The other is Rota Sertaneja, which covers the extension of BR-153/GO/MG between Goiânia, Goiás state, and Uberaba in Minas Gerais,” ANTT said in a statement.

Although it did not provide a timeframe for the auctions, it said the notices will be launched in the second half of the year.