Brazil expects US$19bn in highway investments through renegotiation program

The Brazilian government is looking to unlock 110bn reais (US$19bn) in investments for the country's roads sector through a program to end legal disputes.

There are 14 highway concessions that have been involved in legal battles that are now part of the program, which will facilitate the renegotiation of contracts, the transport ministry said in a statement. 

Most of the contracts were awarded more than 10 years ago, with concessionaries requesting contractual changes or the return of contracts due to vehicle traffic estimates and other metrics failing to meet the projections of the original contracts.

“These highways are located in the most economically vibrant region of the country. They have seen construction halted and suffered from low investment, which hindered the progress of national development,” said transport minister Renan Filho.

The government sees the renegotiation program as a faster way to unlock investments compared to launching new tenders, which could take years. One key advantage of renegotiating contracts is the ability to restart existing projects and use valid licenses.

With this approach, construction works are expected to begin within 30 days of signing the addendums, the ministry said. All the contractual modifications are subject to approval by the country’s audit court.

As a result of the program, the government expects widening of 1,500km, with 437km scheduled for completion during 2024-26. Also planned are 849.5km of additional lanes, with 209.6km expected to be finished by the end of 2026.

More details of the 14 concession contracts can accessed via this link.