TREND: Private sector planning Brazil's infra projects

Tuesday, May 23, 2017

As Brazil strives to recover from its economic crisis, one trend this year is local and state authorities seeking private sector support to prepare infrastructure construction projects through consultancy tenders.

The following are some of the works for which private sector support has been solicited.

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In Pernambuco state, the state-owned administrator of Suape port (pictured) is preparing a 1bn-real (US$305mn) project to build a new container terminal, which involves building a 900m pier with two berthing areas, a 250m2 shipyard and dredging works.

Proposals from companies interested in developing technical and financial feasibility studies were due May 5 and the winning offer should be announced this week (May 22-26). The company selected will have 90 days to complete its studies.

The terminal, to be known as Tecon2, will have capacity to handle up to 1.2mn TEUs/y. The tender to build it is expected to be issued in the first half of 2018.

Also being prepared in Pernambuco is a state government project to develop feasibility studies for an upcoming concession to operate and maintain the soccer stadium in state capital Recife.

The state relaunched a call for expressions of interest for the development of technical, environmental, financial and legal feasibility studies earlier this year, which called for a consultancy to determine the least costly option between a standard concession, a public-private partnership (PPP) or different model.

On April 11, the state's official gazette announced that three companies had qualified to prepare the six-month studies. They are Radar PPP, Tecnix Engenharia e Arquitetura and Ernst & Young Essessoria Empresarial.

In Brazil's southeast, the city of São Paulo is seeking firms interested in preparing PPPs to restore, operate and maintain 14 municipal parks. Interested companies, individuals or consortiums may prepare concession plans for one or more parks, including details such as investment commitments and counterpart funding requirements.

According to the city's PPP secretary, Wilson Poit, the plan must involve the concession holder guaranteeing investments [roadworks, infrastructure improvements, etc.] and assuming all equipment expenses, all while not charging admissions. Expressions of interest must be submitted by June 9.

After evaluation and eventual selection of the PPP model to be used, a public consultancy phase will be launched to address final doubts and draw comments, followed by a tender for the actual operation of the parks.

Also in São Paulo, the state government will soon be seeking consultancy companies interested in developing a plan to build bus terminals in capital city São Paulo in collaboration with the city's public transport authority, SPTrans.

Although the state has accepted a proposal from local consultancy company Socicam Administração Projetos e Representações to prepare a plan, a phase of formal expressions of interest will be opened shortly to give other companies a chance to participate.

The state's goal is to develop a plan that separates the bus terminal construction project from the state's long-term concessions for bus operators, for which a tender will likely be launched by June.

Finally, transport infrastructure department DNIT launched a consultancy tender earlier this year for an 18-month contract to develop a basic plan and executive project, in addition to carrying out the civil works, to build pedestrian walkways in Santa Catarina state along federal highway BR-282 in the city of Leges.

On March 23, local construction company Zanco Construtora was announced as the winner of the 5.72mn-real contract.