Authorities set new date for US$100mn Brazil-Argentina bridge concession

Brazil and Argentina have set April 4 as the new date for the auction of the concession for the bridge connecting São Borja in Rio Grande do Sul to Santo Tomé in Argentina, according to Brazil’s transport ministry.

Originally set for January 7, the auction was suspended by an order from Brazil’s federal court (TCU) after Ponta Negra Soluções Logísticas e Transportes, a local company and one of the interested parties, raised concerns about inconsistencies in the contract notice, including discrepancies in the traffic estimates used to calculate the contract fee.

The authorities have addressed these issues, revised the contract notice and republished the details with the new auction date. All related documents, including the contract notice, can be accessed here, in Portuguese.

The reserve price has been set at US$40.8mn, with capex and opex estimated at US$99mn over the 25-year contract period.

The concession covers a 15.6km stretch of roadway, including the 1.4km bridge and the surrounding access roads.

Opened in 1997, the bridge is currently operated by the concessionaire Mercovía and is the only binational bridge under concession.

The current contract expires in August and cannot be extended without a new auction.

The bridge handles approximately 23% of trade between Brazil and Argentina and 40% of trade between Brazil and Chile.