Brazil to change model for planned highways concession

Brazil’s government will change the concession model for the BR-381/BR-262 highways, offering only one of them in an attempt to attract stronger investor interest.

"We’re only going to do the auction for the concession of the BR-381 highway, which will be a project with estimated capex of around 6bn reais [US$1.17bn]," infrastructure minister Marcelo Sampaio (pictured) told BNamericas.

The highway has an extension of 297km from Belo Horizonte to Governador Valadares, in Minas Gerais state.

"In the next 30 days, I will forward the documents of this concession to the [federal audit court] TCU and the publication of the [tender] notice is likely to take place in October, my idea is to hold this auction in December of this year," he said. 

In February, the government decided to suspend the auction for the highways due to lack of investor interest. 

The auction date had been changed three times because of modifications to attract greater interest from investors and reduce the risk of supplies-related price fluctuations for the future concessionaire.

The main works in the original concession plan were the widening of 402km and building 228km of new lanes, 40 footbridges and a tunnel.

"I will wait to see the details when the notice is published and evaluate the feasibility of our participation in the auction," Marco Antônio Cauduro, CEO of Brazilian infrastructure firm CCR, told BNamericas. 

Planned improvement works for the BR-262 stretch between João Monlevade in Minas Gerais and Viana, in Espirito Santo state, is likely to be assumed by the state governments.

OTHER HIGHWAY CONCESSIONS

The highway segment is one of the most affected by strong price pressures due to the rise in the cost of asphalt, and the government is therefore looking to advance more slowly with the concessions agenda in this segment. 

"This year we should have another major auction in the highways area, which will be the concessions of two of a total of six lots of highways in Paraná state," said Sampaio.

The government was originally planning to hold an auction in the second half for a package of six federal and state highways in Paraná, with a combined extension of 3,328km and capex worth 44bn reais. Sampaio did not give any details about the two highways that will be offered.

WATERWAYS 

The government is also planning a new regulation to raise private sector investment for waterways. 

"In the coming months, we will send a proposal to congress for a new regulation to attract investment to river navigation and ports along the rivers," said Sampaio. 

"We want to replicate the model in the bill called BR do Mar [sea highway], which promotes cabotage, for the rivers. Our intention is promoting cargo transportation via rivers in a BR dos Rios [rivers highway].”