Brazil's December infrastructure auctions could generate US$8bn in investments

Brazil has an extensive pipeline of tenders scheduled before the end of the year, potentially generating over 50bn reais (US$8.3bn) in new investments.

Among the five contracts set to be offered, three are highway concessions, one pertains to port terminals, and another involves a streetlighting PPP.

The federal and state governments have made notable progress with auctions in 2023 and 2024, many of which drew significant interest from bidders. However, concerns loom on the horizon.

“Brazil experienced a positive cycle of economic growth in 2023 and 2024, but I see it as difficult to repeat this on the same scale starting in 2025,” Roberto Troster, former chief economist at banking federation Febraban and an economist at Troster & Associados, told BNamericas. “Interest rate hikes in the coming months are likely to impact economic growth and project financing conditions.”

The following auctions are due to be conducted on São Paulo’s B3 stock exchange during December.

Rota Verde highway (green route):

On December 12, the federal government will auction a 30-year concession for sections of the BR-060 and BR-452 roads, covering 426km. The estimated investments total 6.86bn reais, with 4.03bn reais earmarked for capex. Key works include 31.1km of divided highway and 112km of additional lanes.

Paraná state highways (lots 3 and 6)

These concessions, expected to involve a combined 36bn reais in investments, are set for December 12 (lot 3) and December 19 (lot 6).

Lot 3 spans nearly 570km and involves 9.87bn reais in capex and 6.04bn reais in opex, for 133km of divided highway and 224km of additional lanes.

Lot 6 covers a stretch of 662km, with capex of 12.7bn and 7.44bn reais in opex. It involves of 462km of divided highway and expansions.

Port terminals

On December 18, leasing contracts for three terminals will be auctioned, which are expected to attract investments of 3.62bn reais.

ITG02 (Itaguaí port, Rio de Janeiro): Focused on iron ore, this 35-year contract entails investments of 3.53bn reais. Located near major mining operations and linked by rail to Minas Gerais state, the terminal is expected to draw strong interest from investors.

The initiative involves the construction of a pier for the terminal, which is close to existing terminals serving major mining and metals firms such as Vale and CSN.

MCP03 (Santana port, Amapá): This is a 25-year contract with projected investments of 89mn reais to handle solid vegetable bulk, including soybeans and corn.

MAC16 (Maceió port, Alagoas): A five-year contract with investment of 6.2mn reais to support solid bulk operations.

Streetlighting PPP

On December 20, the final auction of the year will take place in Maranguape, Ceará state. The contract, valued at 11.4mn reais in capex, involves upgrading and maintaining the city’s public lighting system.