
Way Brasil consortium wins US$350mn highway contract

The Way Brasil consortium offered Brazil’s Mato Grosso do Sul state the highest fee – 150mn reais (US$28mn) – in an auction for a contract involving three highway concessions demanding 1.86bn reais (US$350mn).
With the offer, Way Brasil outbid Stratura Asfaltos and Monte Rodovias.
The winning consortium comprises Singapore-based Global Logistic Properties (GLP) and local construction groups Bandeirantes Engenharia, TCL Tecnologia e Construções, Senpar, Torc Terraplanagem and NL4 Consultoria.
"This is an important project that will help the state of Mato Grosso do Sul to transport its agricultural production. This asset is important to us and has 100% synergy with what we already have in our portfolio," CFO Giovanni Mott said after the auction at the São Paulo stock exchange.
In 2019, the consortium won a 30-year concession for the MS-306 highway, also in Mato Grosso do Sul.
The newest contract is also valid for 30 years and obliges Way Brasil to maintain, operate and expand the road system, comprising sections of the MS-112 and the BR-158 and BR-436 highways, totaling 412km.
Opex is estimated at 1.6bn reais.
"In the next 10 years, the planted area in Mato Grosso do Sul will double and this will demand more investments in logistics. I believe that the next governor will continue to advance the highway concession agenda," outgoing governor Reinaldo Azambujasaid after the auction.
Eduardo Corrêa Riedel of PSDB party will succeed Azambuja on January 1.
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