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

  • September 19, 2013
    Brazil’s government to privatise roads with lowest tolls
    Brazil’s government announced plans in 2012 to sell state asset to private investors through long term concession deals that would give the winning bidder the right to operate roads, rails and ports, many once built by the government, for around 30 years. The government is now looking to contain the risk involved with high tolls during the privatisation process for roads, and will initially auction off motorways with the lowest tolls.
  • November 20, 2014
    Peru lines up road, rail concessions for 2015
    Peru plans to award next year infrastructure concessions including rail and road projects. Hydro and thermal power plants and liquefied petroleum gas distribution in the capital are also being lined up, a senior government official has said. Concessions will include the fourth stretch of the Longitudinal de la Sierra highway, which calls for the construction, operation and maintenance of a 640 kilometre stretch of Peru's Longitudinal de la Sierra highway, connecting Huancayo, Izcuchaca, Mayoc and Ayacuch
  • January 28, 2015
    Brazil considers south-east railway plan
    Espírito Santo governor Paulo Hartung is pushing for the construction of a US$2.69 billion railway that will connect sea ports in the south-eastern states of Espírito Santo and Rio de Janeiro. The proposed 550 kilometre railroad would connect Vitória and Anchieta ports in Espírito Santo to Rio's Açu port in the town of São João da Barra, and would be used for the transport of ore, according to one local paper. The project would contribute to Brazil's overall strategy to boost its commercial competitiv
  • January 23, 2015
    Private investment in Latin American infrastructure on the rise
    Private investment in infrastructure projects has grown significantly over the past decade in Latin America's six largest economies, with the exception of Mexico and Argentina, according to a Standard & Poor's report. In Mexico the retraction in private investment is explained by poor planning and execution of projects on the part of the government. Meanwhile in Argentina, the dip is explained by government intervention, according to the report. Outside the two regional powerhouses, private sector par