Brazilian state of Bahia conducts public consultation of highway PPP

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Brazilian state of Bahia conducts public consultation of highway PPP

A public consultation of the BA-052 Road System public-private partnership has been initiated by the Secretary of Infrastructure, in Bahia, Brazil, where the project is located. Bahia is a state in the north-east of the country.

The scheme of the concession involves the operation, maintenance and rehabilitation of the BA-052 Road System, as well as the construction of a bridge-crossing over the São Francisco River between the municipalities of Xique-Xique and Barra.

BA-052 is known as the Bean Route and is an important route for agricultural production in the west of Bahia, connecting Xique-Xique to Feira de Santana.

In June 2015, the state of Bahia contracted the International Finance Corporation (IFC) to structure the project, for BRL6.9 million (US$2.08 million).

The concession contract covers a 20-year period and the estimated investment of the future concessionaire is BRL705 million (US$212.91 million).

The model provides for the provision of public funds of BRL$60 million (US$18.12 million), divided into two installments: one at the end of the third year and the other at the end of the fourth year of the concession. The agreement also provides for the possibility that the public authority chooses to substitute the payment of each installment for an increase in the value of the compensation, with a pre-defined monthly amount, which will be paid until the end of the contract term.

Those interested in sending criticisms, comments and suggestions of the draft PPP edict, contract and annexes may do so by January 5. Publication of the tender is scheduled for February 2018.

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