Brazil’s highway sector shifting gears toward sustainability

Brazil's highway sector, one of the most dynamic in the country in terms of new projects, is placing greater emphasis on sustainability requirements.

These demands, driven by the rapid increase in extreme weather events across the country, are now embedded in both current and future contracts.

"Today, we’re seeking suppliers who can help us advance our ambitious capex plan for the coming years. One of the key requirements for these new suppliers is regarding sustainability aspects, such the solutions they present us for the reuse of materials," Carlos Eduardo Xisto, director of engineering at Brazilian group EPR, told BNamericas.

EPR, a joint venture between infrastructure company Equipav and fund manager Perfin, is planning to strengthen its relationships with suppliers as it navigates a robust pipeline of projects in the highway sector. 

Operating in Minas Gerais and Paraná states, EPR manages more than 2,300km of highways under five concession contracts. 

The group plans to invest 31.6bn reais (US$5.54bn) over the next 30 years in widening works, additional lanes, electronic toll collection systems and user support services.

Meanwhile, the government is also integrating more sustainability provisions into future concession contracts in the sector.

“There will not be a road concession contract in Brazil without a sustainability perspective,” Cloves Benevides, deputy secretary for sustainability at the transport ministry, said in a statement. 

"Protecting biomes and respecting people is part of the process, because inadequate action itself can generate future costs, like those we’re already experiencing from infrastructure adaptation, as well as losses and damages from recurring climate events, which are putting pressure on contracts and public policies," he added.

Brazil has experienced an intensification of extreme weather events in recent years, affecting the highway sector in particular. The most pressing concerns include increased landslides on highways and the damage that torrential rains inflict on asphalt.

Since President Luiz Inácio Lula da Silva's administration took office in January 2023, 11 highway concessions have been auctioned, generating 74.2bn reais in investments, according to recent transport ministry figures.

So far this year, four highway concession contracts have been offered, with three more bidding processes planned. Transport minister Renan Filho recently told BNamericas that the government expects to hold at least 10 highway concession auctions next year.