Brazil mulls extending investment deadlines for highway concessionaires

Thursday, April 20, 2017

Government officials in Brazil are considering giving cash-strapped federal highway concessionaires more time to fulfill their investment commitments.

According to the transport ministry's transport stimulus secretary Dino Antunes Batista, this could be done in exchange for lowering tolls or shortening concession periods, local paper Valor Econômico reported.

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A decision on the matter could be made this year and the new investment deadlines would depend on the "logistics and business reality" of each highway stretch, he was quoted as saying.

In late March, the transport ministry introduced a similar change for airport operators which involved easing contract payment obligations for five international airport concession holders.

The concessionaires have been financially impacted by the country's recession and by restricted access to loans from national development bank BNDES amid the fallout from the so-called Lava Jato corruption investigation.