CCR preparing to begin investments in Brazil's largest highway concession

Brazilian infrastructure firm CCR this month assumes a new concession contract to manage two important highways connecting São Paulo and Rio de Janeiro states.

CCR won the October 2021 auction for the concession of the Presidente Dutra and Rio Santos highways, formally named BR-116 and BR-101, which is the largest concession contract currently in force in the country in terms of projected investments.

With the new 30-year contract, a total of 14.8bn reais (US$2.9bn) will be invested to improve the highways, while another 10.8bn reais is earmarked for operating expenses during the contract. 

Although the exact timetable of investments has not yet been announced, most will be made within the first five years of the contract, generating 220,000 jobs, an infrastructure ministry spokesperson told BNamericas.

The engineering works required on some stretches are considered complex, since the roads run through a mountainous region called Serra das Araras. However, despite the engineering challenges, the concession contract was considered highly attractive, as the roads are very busy between the two biggest metropolitan areas in the country. 

"Among the main investments, we highlight the widening of the Serra das Araras section with a more modern road that is 16.2km long, the implementation of 569km of additional lanes on BR-116, the widening of 80.2km of BR-101/RJ, in addition to the implementation of a free flow toll mechanism in the metropolitan region of São Paulo," the ministry of economy said in a release.

CCR has operated the Presidente Dutra highway since 1996, and it continues its management of the road with the contract won in the October auction. It also took on the contract for the BR-101 highway, which links the city of Rio de Janeiro to Ubatuba, on the coast of São Paulo state. 

CCR fended off competition from Ecorodovias in the auction, offering a fee of 1.77bn reais to the government to assume the concession.