Queiroz Galvão group wins US$1.6bn São Paulo highway PPP

Monday, October 6, 2014

A Brazilian consortium led by local engineering company Queiroz Galvão has won a 3.9bn-real (US$1.6bn) public-private partnership to widen, operate and maintain São Paulo state's Tamoios highway for 30 years.

The group, known as the Litoral Norte consortium, has requested a concession payment of 0.01 reais a year for 25 years. The ceiling price stipulated by the state government - which called bids in June - was 157mn reais/y, local news portal Globo reported.

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Two toll booths will be installed on the highway with fees of 4.90 reais and 2.80 reais and one more on the Caraguatatuba bypass with a toll of 1.90 reais. Tolls can be charged as of December 2015 if at least 6% of civil works are completed by that time.

Although a competitor has filed a lawsuit calling for the technical evaluation of business plans of two of the bidders, the tender process will continue and contract signing is planned for November, the report said.


In second place was the Via Nova Tamoios consortium that requested a payment of 34mn reais/y. The group is led by local highway operator EcoRodovias with a 37.7% share, and includes Odebrecht (19.6%), Serveng-Civilsan (18.9%), EMS Participações (18.9%) and Infravix (5%).

Requesting a concession payment of 58mn reais/y was the Desenvolvimento Nova Tamoios consortium. It is comprised of local investment firm J&F Investimentos with a 75% stake, Concremat (10%), Strata Construções (9%), Spain's Acciona Infraestructuras (5%) and EIT Engenharia (1%).

The Novos Caminhos consortium requested a 152mn-real annual payment. It is led by local engineering company Galvão Engenharia with a 69% stake. Construtora Aterpa M Martins (30%) and Toniolo, Busnello (1%) make up the rest.


The project involves operating and maintaining the Planalto and Serra stretches of the Tamoios highway, also known as SP-99, which runs between the city of São José dos Campos and Caraguatatuba on the coast.

The contract calls for a 3.9bn-real investment. Some 2.9bn reais will go towards widening 21.5km of the Serra stretch, which includes 12.5km of tunnels and 2.5km of viaducts. Works are scheduled to start in November and should be completed by November 2019.

The remaining 1bn reais will be invested throughout the term of the contract, which also includes managing the Caraguatatuba and São Sebastião bypasses, also known as highway SP-55.

Government payments to the concessionaire, due between years six and 30 of the contract, should total no more than 5.80bn reais.