Privatization - Brazil

Brazil's highway tenders: BR-050 receives eight bids, BR-262 none

Brazil's highway tenders: BR-050 receives eight bids, BR-262 none

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Brazil's national ground transport agency ANTT has received eight bids for its 3.03bn-real (US$1.34bn) BR-050 federal highway concession between Goiás and Minas Gerais states but no bids for its 2.07bn-real BR-262 concession between Minas Gerais and Espírito Santo states.

Transport minister César Borges disclosed the information about the 30-year concessions on Friday (Sep 13), and did not define a new schedule for the BR-262 bidding, federal news service Agência Brasil reported.

While the minister was pleased with the interest in BR-050, he gave no details as to why there was a lack of interest in BR-262, but affirmed that the federal government is currently analyzing the situation, the report said.

Of the eight offers, four came from companies and four from consortiums. Among the companies were local engineering firms Queiroz Galvão and infrastructure group Triunfo Participações e Investimentos (TPI) (Bovespa: TPIS3). For a list of all bidders, in Portuguese, visit this link.

Meanwhile, upcoming tenders will run along as scheduled. The next one, for BR-101 in the northeastern state of Bahia, is scheduled for October 23.

The projects fall under the country's 42.5bn-real federal highway concession plan. Visit this page for more details on the plan.

BR-050

To span 437km between the municipalities of Cristilina in Goias and Delta along the Minas Gerais and São Paulo border, the contracted stretch will have six tollbooths in the municipalities of Ipameri, Campo Alegre de Goiás, Uberaba, Araguari and Delta.

Budgeted at 0.08 reais/km, the ceiling prices set for tolls are between 4.3-7.3 reais. Tollbooth charges can only start after 10% of road widening works are done. Overall, 219km of road will be widened.

While expected investment throughout the concession is 3.03bn reais, foreseen revenue and operating costs are expected at 10.1bn reais and 1.97bn reais, respectively.

BR-262

Stretching 376km between the municipalities of Viana in Espirito Santos (BR-101 junction) and João Monlevade in Minas Gearis (BR-382 junction), the concession involves five tollbooths in the municipalities of Marechal Floriano, Muniz Freire/Brejetuba, Reduto, Matipó and São Domingo do Prata.

Set at 0.11 reais/km, the ceiling prices set for tolls are between 7.40-9.90 reais. Tollbooth charges can only start after 10% of road widening works are done. Overall, 189km of road will be widened.

While expected investments throughout the concession are set to reach 2.07bn reais, foreseen revenue and operating costs are expected at 7.96bn reais and 1.74bn reais, respectively.

For more information on the ANTT website, visit this link.