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

  • August 7, 2015
    Infrastructure projects to drive the construction industry in Norway
    According to a recent report by Timetric’s Construction Intelligence Center (CIC), Norway’s construction industry will continue to expand over the coming five years, with investment in transport infrastructure projects continuing to drive growth. Under the government’s fourth National Transport Plan (NTP) 2014–2023, a series of infrastructure projects will be launched with an investment of around US$86.5 billion. The Norwegian Ministry of Transport and Communications has proposed total investment in th
  • June 28, 2016
    European Commission approves funding for transport infrastructure
    The European Union has unveiled a list of 195 transport projects that will receive US$7.4 billion (€6.7 billion) of funding under the Connecting Europe Facility (CEF). This investment is expected to unlock additional public and private co-financing for a combined amount of US$11 billion (€9.6 billion). The selected projects are primarily located on the core trans-European transport network (TEN-T). Among the beneficiaries are flagship initiatives such as the rehabilitation of the Brasov Sighisoara rail s
  • August 29, 2014
    Mexico developing highway projects
    Mexico's transport and communications ministry, SCT, is developing 46 highway projects, worth US$12.3 billion, to be completed by 2018. "We have 28 highways under construction, eight were recently finished, and construction on an additional seven highways will start before the end of the year, said SCT minister Gerardo Ruiz, during the launch of construction of the Cardel-Poza Rica highway. A consortium led by Mota-Engil won a 30-year concession for the 129 kilometre Cardel-Poza Rica highway concessi
  • May 14, 2014
    Australia’s infrastructure spending plans
    In its federal budget announced on 13 May 2014, the Australian government announced plans for new infrastructure projects costing US$117.04 billion to keep the economy going after the mining boom ends. The new funding and existing projects are expected to boost infrastructure investment to US$47 billion by end of the decade. The government will invest US$11 billion to fast track infrastructure projects including US$3.4 billion for road projects, US$4.6 billion to asset-recycling fund for states and US$2.