Brazil to start public hearings on highway concessions

Brazilian transport regulator ANTT will start a public hearing on highway concession rules this week.

"The establishment of these guidelines aims to ensure certainty about the actions of management and contractual supervision, balancing the obligations in a reasonable period that precedes the termination of the concession contract, in order to ensure the continuity of the service and the attendance to the public interest," ANTT said in a press release.

The public hearing will take place between November 18 and December 17, with a focus not just on future contracts but also on those that expire soon. 

Certain players are in talks with regulators to return concessions due to financial problems that started in recent years and deteriorated sharply during the COVID-19 outbreak. 

Meanwhile, the government is implementing plans to attract private sector players.

The auction for the New Via Dutra (BR-116/101/SP/RJ) concession – connecting São Paulo’s and Rio de Janeiro’s metropolitan regions – is among the most anticipated.

Audit court authorization is still pending but the infrastructure ministry plans the auction for the first half of 2021.

The 30-year contract for the 626km highway stipulates that the winner must invest 14.5bn reais (US$5bn) in improvements, expansion, service and safety-related maintenance. 

Rodovia Presidente Dutra S/A-Nova Dutra is holding the current concession until March next year.

After steep declines, the highway segment is showing signs of recovery. In October, traffic on toll roads increased 2.9% versus September, highway concessionaire association ABCR said in a release.