São Paulo launches US$1.5bn tender for highways concession

The governor of Brazil's São Paulo state, Geraldo Alckmin, has launched a 5bn-real (US$1.5bn) tender for the 30-year concession of a highway network in the state, known as Rodovias dos Calçados

Spanning 720km between the cities of Itaporanga and Franca, the 10-highway network includes parts of the SP-255, 249, 257, 281, 304, 318, 328, 330, 334 and 345 roads. They pass through a total of 35 municipal regions, including cities such as Bauru, Itapeva, Ribeirão Preto and Sorocaba.

Besides the operation and maintenance of the highways, the contract calls for widening 274km of roads. While 2.4bn reais is outlined for maintenance and repairs, approximately 1.6bn reais should be used to modernize equipment and systems and for other improvements, while 1bn reais will got to road widening works.

The highways will be equipped with truck weighing facilities, Wi-Fi access, georeferenced video support and smart cameras that will work in close coordination with an information control center (ICC) that will transmit information, such as real-time updates on accidents, weather and other data.

The ICC will be managed by São Paulo state transport authority Artesp and Detecta, which is operated by the state's department of public security.

The toll charges will be demand-driven, meaning that they will vary depending on traffic. According to the tender, tolls will be at an average approximately 21% below the current rates, while a 5% discount will be offered to those paying electronically.

This model was developed with the support of the Word Bank's International Finance Corporation (IFC) and international consultancies.

Companies and consortiums may request tender clarifications until April 10 and proposals are due before April 25 when the bids will be opened. The concession will be awarded based on the highest fixed concession payments offered.

During public audiences, some of the local companies expressing an interest were Arteris, CCR, and Ecorodovias. The tender was due to be published in São Paulo's official gazette this week.