Invepar may be forced to return Brazil highway concession
Brazilian infrastructure company Invepar is at risk of having to return its BR-040 highway concession rights as it is failing to carry out planned investments, according to transportation watchdog ANTT.
The company already received a total fine of 18mn reais (US$5.6mn) as it failed to meet with investment plans in the highway. Invepar has until September 22 to deliver a recovery plan regarding its investments on the highway, according to ANTT director, Mario Rodrigues Junior, quoted by the local newspaper Valor Economico.
If Invepar fails to deliver, the concession contract can be canceled.
"The scenario for this concession is very worrying. I believe they [Invepar] will allow it to expire or return it," said the ANTT director.
BR-040 toll road system extends for 936.8 km and connects Brazil's capital Brasília, with Juiz de Fora, in Minas Gerais state. Of this total, 8.4 km are in Brasília, 157.3 km in Goiás state and 771.1 km in Minas Gerais. The original contract required a total of 702 km to be widened.
Certain infrastructure companies in Brazil are facing difficulties regarding their concessions in highways and airports, among others, due to the combination of reduced demand following the country's deep recession in the past two years, and credit restrictions.
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