Skip to main content

Brazil infrastructure concessions tempt investors

Private sector players are interested in US$45.8 billion of infrastructure concession projects planned as part of the second round of the country's logistics improvement program PIL. According to planning minister Nelson Barbosa, who said each of the concessions had attracted the attention of at least two potential bidders, the government was working to award tenders based on the highest canon payment offered as opposed to the lowest tariff and to reduce the 49 per cent participation of national airport
June 22, 2015 Read time: 2 mins
Private sector players are interested in US$45.8 billion of infrastructure concession projects planned as part of the second round of the country's logistics improvement program PIL.

According to planning minister Nelson Barbosa, who said each of the concessions had attracted the attention of at least two potential bidders, the government was working to award tenders based on the highest canon payment offered as opposed to the lowest tariff and to reduce the 49 per cent participation of national airport authority Infraero in airport concessions.

The transport ministry is planning 15 federal highway concessions worth around US$16.1 billion in total. Four tenders valued are expected to be awarded by year-end, and 11 are planned for 2016.

Based on the lowest tariff to be charged, tenders for this year's four phase one projects are nearly ready to be launched and expressions of interest for feasibility studies for the 11 phase two projects are due on 10 July.

A total of US$3.9 billion is earmarked for new port concessions, which have been split into two sections, one for 29 areas to be launched this year and the second for 21 terminals at various ports, to be launches during the first half of 2016.

Expressions of interest for the development of feasibility studies to prepare four upcoming international airport concessions worth a total of US$2.7 billion are due on 29 June. The federal audit court TCU expects to finalise approvals in the first half of 2016 and concession tenders, which would be awarded based on the highest canon payment offered, should be launched by March.

Brazil is also preparing five railway concessions valued at US$22.7 billion. The country’s transport ministry will shortly be launching an expression of interest phase to develop an updated concession model to r4eplace the current open-access model.

Related Content

  • Efkon wins six new ITS contracts in India
    May 23, 2012
    Austrian company Efkon has announced that its Efkon India subsidiary has won six prestigious ITS projects, worth a total of US$12.65 million, in the last five months. The Jaypee Group has awarded the company a follow-up contract for a turnkey solution for the expressway traffic management and speed enforcement systems for the Yamuna expressway in the south of New Delhi. Efkon is providing a single interface solution for all the sub-systems which enables information capture of all expressway activities and c
  • São Paulo re-launches monorail PPP tender
    May 23, 2014
    São Paulo state transport department STM has re-launched its US$2.13 billion tender to build, operate, and maintain a monorail for the state capital's metro line 18, also known as the bronze line. The concession involves building and operating the line for 25 years. The line will be a monorail stretching nearly 15 kilometres between São Paulo city and the neighbouring ABC region of Santo André, São Bernardo do Campo and São Caetano do Sul, with 13 stations. The new line will connect the southern neighbou
  • Brazil tenders interstate bus concession in Goiás
    April 10, 2014
    Brazil's national ground transport agency ANTT has launched a four-lot tender budgeted at US$2.55 billion to operate an interstate bus system in and around the nation's capital for 15 years. The public-private partnership involves interconnecting eleven municipalities in the mid-western state of Goiás to several of the federal district's administrative regions. The entire network is comprised of 551 bus lines in 33 sectors that transport some 90 million passengers per year, ANTT says. The tender stip
  • South Africa's first multi-lane free-flow tolling top of the line
    February 3, 2012
    Kapsch's Kjell Arnesson talks about the first multi-lane free-flow tolling project in South Africa. In South Africa, installation is ongoing as part of the Gauteng Freeway Improvement Project (GFIP) of the country's first Multi-Lane Free-Flow (MLFF) tolling system.