Abertis agrees road concession extension in Brazil

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Abertis agrees road concession extension in Brazil

Abertis, through its subsidiary controlled by Arteris, Autovías, S.A., has reached a agreement with the Sao Paulo State Transportation Regulatory Agency (ARTESP) for a new capex program to increase capacity over a 14 kilometre segment of SP-318 (between km 249 and 253)

The total project investment is estimated at R$91 million (US$38 million).

The works, which will be finished by June 2016, will improve the service levels for 1.5 million people in the Sao Carlos, Araraquara, and Ribeirao Preto.

As a consequence of this investment, the Autovias' concession term will be extended by an estimated 6 months, thus maturing in May 2019.

This agreement highlights Abertis' ability to create value for its shareholders through win-win contract renegotiations with granting authorities. Furthermore, this kind of agreement sets an example of future negotiations with administrations.

Autovias had a 20-year concession to operate the toll road services of five small adjacent roads in the interior of the state of São Paulo, which the state regulatory agency ARTESP granted under a single concession in 1998. The five roads consist of 316 kilometers and 5 toll plazas and have an estimated annual traffic of 44 million of equivalent vehicles. The region covered by the concession comprises eighteen cities with an estimated population of around 1.6 million people.

List of country news

Country news

  • September 29, 2014

    Para de Minas launches sewage concession

    The Municipality of Pará de Minas, located in Minas Gerais state (Brazil), has launched a concession  relative to the water supply and the sanitation services in the city. Read more
  • October 02, 2014

    Banks will increase infra lending to substitute BNDES in Brazil

    Fitch Ratings said on September 30th that private local banks and investors are expected to assume larger roles in financing Brazil's growing infrastructure needs as government-sponsored lending sources may face limitations under any newly elected government. Read more
  • October 02, 2014

    Espiritu Santo works on three PPP projects

    Southeastern Brazil's Espírito Santo state has announced plans for three PPP projects: the Greater Victoria water transport, twenty schools in Espiritu Santo, and a project to modernize criminal and civil identification in the state. Read more
  • October 03, 2014

    Brazil's OAS, SAAB submit bids for Minas Gerais waterworks concession

    The Municipality of Pará de Minas, located in Minas Gerais state (Brazil), has received two bids for the concession  relative to the water supply and the sanitation services in the city. Read more
  • October 06, 2014

    Consorcio Litoral Norte wins Tamoios highway PPP

    Brazil's São Paulo state, through the state transportation agency of São Paulo (ARTESP), has awarded the Rodovia dos Tamoios highway PPP project to the Consórcio Litoral Norte, led by Queiroz Galvão. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.