São Paulo state mulls new highway concessions

Monday, August 27, 2018

São Paulo state transport agency Artesp will evaluate the feasibility of new concessions of around 1,000km of highways across the country's wealthiest and most populous state.

The study by Artesp will take place after the state's privatization council approved deeper evaluation regarding concessions in April, an Artesp spokesperson told BNamericas, without providing an exact timetable for the conclusion of such evaluation.

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The government seeks to offer packages including stretches administered by the state department of roads, DER-SP, and under operation of Centrovias, as the concession finishes in June 2019.

According to Artesp's spokesperson, relevant necessary investments are around 9bn reais (US$2.19bn), including expansion and repaving works, along with the installation of WiFi.

The new concession will incorporate about 800km of stretches currently operated by DER-SP, including widening of about 120km of SP-294, between Marília and Parapuã cities, 95km of SP-304, between São Pedro and Jaú, and 6km of duplication on the SP-308, in Charqueada region,

On the stretch currently administered by Centrovias, main works are expected for the SP-310 highway, between Cordeirópolis and São Carlos.

The evaluation of more highway concession is taking place as the state administration is changing.

Geraldo Alckmin, state governor since March 2001, left the post in April to run as a presidential candidate in October's elections, in which Brazilians also vote for state governors and legislators.

The race for São Paulo governor looks tight. According to recent polls, João Doria of Alckmin's PSDB party is leading with 20%, followed by Paulo Skak, the head of powerful state industry federation Fiesp, with 18%.

Both candidates have a similar agenda favoring concessions and more public-private partnerships.