Brazil sets date for US$1.76bn highway auction

The auction for the 7.4bn-real (US$1.76bn) concession for 220km of the BR-101 highway in Brazil's Santa Catarina state is scheduled to take place on February 21 on the São Paulo stock exchange. 

During the 30-year concession period the winner is expected to invest 3.4bn reais, while operating costs are set to reach 4bn reais.

The concession notice, in Portuguese, is available here. 

The auction is the last in which the bid offering the lowest basic toll fare will win. In the following auctions, the winning proposal will be determined considering a combination of lowest toll fare and highest payments offered.

The concession runs through the municipalities of Paulo Lopes, Garopaba, Imbituba, Laguna, Pescaria Brava, Capivari de Baixo, Tubarão, Treze de Maio, Jaguaruna, Sangão, Içara, Criciúma, Maracajá, Araranguá, Sombrio, Santa Rosa do Sul and São João do Sul.

CONCESSIONS PIPELINE

Brazil's government is offering an extensive pipeline of highway concessions, of which BR-101 forms part.

But the planned offer of 16,000km of concessions has also raised concerns. 

“Currently in Brazil, around 10,000km of federal highways are operated by private sector concessionaires. If we look at the federal government's plan to offer an additional 16,000km and state governments another 10,000km, we can say there is an excess on offer,” César Borges, head of highway concessionaires association ABCR, told a Fitch Ratings-sponsored infrastructure seminar in São Paulo last week.