Federal, Paraná authorities agree highway auction model

The federal government and Brazil’s Paraná state agreed the auction model for two highway lots will involve the lowest price format and maintained the schedule.

Both lots are part of a 50bn-real (US$9.8bn) package involving six blocks, covering 3,330km, interconnecting Paranaguá port, metropolitan Curitiba, 29 municipalities, the state’s west and north, and the Amizade bridge on the border with Paraguay.

Negotiations on the model are necessary because 35% of the package covers state highways and 65% federal ones. The complete package is among the biggest in the pipeline and comprises widening works and construction of viaducts, according to the state.

“What we defend [as the concession model] is a toll with the lowest price. The transport ministry also understands that this is the way to go. In the coming days, the teams from the infrastructure and logistics secretariat and the new teams from the ministry will sit down to detail specific technical issues, so that we can move forward as soon as possible,” governor Ratinho Junior said in a statement.

Concession plans advanced last year, under the Jair Bolsonaro administration. However, after Luiz Inácio Lula da Silva assumed office on January 1, the process was halted for review.

Progress on the talks signals that Lula's administration is in favor of continuing the infrastructure concessions agenda.

"The signaling of the continued concession agenda shows that the current government likes the model of concessions and PPPs. This is a positive sign for investors, but a step toward removing all doubts is still missing; this is not a definitive step yet, since there is no complete clarity on the government's entire agenda regarding infrastructure and regulations," Camila Affonso, a partner at infrastructure consultancy Leggio Consultoria, told BNamericas. 

At a recent press conference, transport minister Renan Filho presented the government's 100-day transport infrastructure plan and said the concessions agenda will continue and that public investments will also rise.

LOTS 

Lot 1 comprises highways BR-277/373/376/476/PR and PR-418/423/427, and 473km. Lot 2 comprises highways BR-153/277/369/PR and PR-092/151/239/407/408/411/508/804/855, totaling 605km. 

A timetable for the publication of the notice and the auction has yet to be provided.