Brazil's Paraná to seek new highway concessions model

The government of Brazil's southern state of Paraná seeks to launch a new model for its highway concessions to facilitate more investment and reduce the price of tolls.

Authorities informed the six highway concessionaries that operate the Anel de Integração, which comprises 2,500km of highways and 27 toll plazas, that their contracts will not be renewed after 2021.

"Paraná needs to advance and start now, begin the elaboration of a new concession model to promote tariff justice with more works and reduction of tariffs by 50% on average," said state governor Cida Borghetti.

Anel de Integração was divided into six lots and tendered in 1997, when the winning companies, Econorte, Viapar, Ecocataratas, Caminhos do Paraná, CCR Rodonorte and Ecovia assumed the conservation and maintenance of the respective stretches, along with expansion works.

Since the start of the concessions program, 270km of widening works have been completed and another 191km are underway. The contracts are valid for 25 years and will expire together with the delegation agreements in 2021.

The government's effort to reduce toll prices is taking place as authorities are investigating certain contracts between the state and highway concessionaries.