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

  • Road user charging comes a step closer in Oregon
    December 19, 2017
    Having been the first US state to introduce the gas tax a century ago, Oregon is now blazing the road user charging trail. Colin Sowman looks at progress to date. For more than a decade, authorities in Oregon have known of the impending decline in fuels tax income and while revenue increased by more than 5% in 2016, that growth will slow considerably this year and income is projected to start declining in 2020.
  • Lima metro works to launch this month
    May 6, 2015
    Construction work on Line 2 of the Lima metro will get underway this month on Lima's eastern outskirts, according to government officials. Construction works include a tunnel and five stations along the central highway from the district of Ate to Santa Anita, said José Zárate, head of the electric train authority (AATE). The US$5.8 billion metro line is scheduled for completion by 2020, transport and communications minister José Gallardo said. The industrial district of Ate will be linked to Lima's city
  • Dubai metro - the world's longest automated rail system
    July 31, 2012
    David Crawford reviews the recent opening of Dubai's Red Line. The US$7.6bn Dubai Metro, the Phase I Red Line of which started partial operation in September 2009, will be the world's longest driverless rail system on its planned completion in 2011. With a total length of some 75km, it will then overtake the 68.7km Vancouver SkyTrain and be able to carry over 1.2 million passengers on a typical day.
  • US favours express buses are for intercity travel
    November 26, 2013
    David Crawford records an upsurge in ground travel. Express buses are powering ahead of air and rail as the US’ most-favoured form of intercity travel and major operators are investing in passenger-attracting and retaining technologies. At the same time ‘kayak’-style price comparison websites are emerging to widen rider choice. Modelled on airline industry search engines that find cheap flight deals by comparing carriers’ offers, these new websites aim to fill the same gap for a ground-travel equivalent