Largest highway concession contract signed in Brazil
On May 15, Artesp (Sao Paulo State Transport Agency) in Brazil signed the concession agreement for the operation of the Piracicaba-Panorama road project (PiPa lot) with a special purpose vehicle Eixo SP, owned by Singapore’s GIC and Brazil’s Patria Investments.
The consortium won the tender with a historical premium of 7.209% over the minimum grant when presenting the offer of BRL 1.1 billion (USD 187 million) for the concession of the highway lot, in the auction held in January 2020.
The winning consortium, under the leadership of Banco Pátria, will make an investment of BRL 14 billion (USD 2.39 billion) and will generate seven thousand new direct and indirect jobs in the first two years of the contract.
With the signing of the contract, the new concessionaire assumes in June the 1,273 kilometers, the largest road network ever tendered in Brazil, for a period of 30 years. The extension covers 12 highways, passing through 62 municipalities in the state of Sao Paulo.
The concession project had the technical assistance of the International Finance Corporation (IFC), which is carrying out the studies and accreditation of the project. IFC's advice comes under the Private Participation Promotion Program, a technical and financial partnership between IFC, BNDES and IDB for the development and promotion of concession and PPP projects in Brazil.
The concession covers 1,273 kilometers of highways that will be modernized and expanded. The Piracicaba-Panorama lot consists of the 218 km network previously operated by the Centrovias concessionaire, of the Arteris Group, in addition to the section operated by DER, which will now receive all the modernizations of the São Paulo Government Highway Concession Program. Investments will be made in sections of the SP-304, SP-308, SP-191, SP-197, SP-310, SP-225, SP-261, SP-293, SP-331, SP-294, SP-284 and SP highways -425.
The modernization and works plan includes the construction of 600 kilometers of duplications and new lanes. There will also be additional lanes and marginal roads, works that improve fluidity, the flow of regional production and road safety. Works on shoulder roads, new accesses and returns, pavement recovery, walkways and cycle paths will also be implemented.
Download our free Brazil PPP Market report:
https://www.infrapppworld.com/report/brazil-ppp-market-2019
You can also find more free reports here.
Country news
-
-
April 27, 2020
Brazil to launch concession of 22 airports
Agência de Transporte do Estado de São Paulo (Artesp) in Brazil has launched a public consultation for airport concessions. The project includes the development, operation, and maintenance of 22 airports located i Sao Paulo state.
Read more -
April 23, 2020
USD1.6bn road concession plan approved in Brazil
The grant plan presented by the National Land Transport Agency (ANTT) for the concession of BR-153/414/080/TO/ GO was approved by the Ministry of Infrastructure in Brazil.
Read more -
March 27, 2020
Concession expiration extended for metro PPP in Brazil
The State Government of Sao Paulo in Brazil has extended the concession expiration period to the Move Sao Paulo consortium, responsible for the construction of Line 6 of the Metro - Orange PPP project. The new contract expiration deadline is May 24, 2020.
Read more -
February 26, 2020
Concession awarded for a major road in Brazil
National Land Transportation Agency (ANTT) in Brazil has selected Brazilian company CCR S.A. as a winner for the concession of BR-101/SC road project in the state of Santa Catarina.
Read more -
February 13, 2020
New procurement plan approved for $1.7bn road project in Brazil
Brazil's national land transport agency ANTT has approved the proposal for BR-153/080/414/GO/TO road concession connecting the states of Goiás and Tocantins. BR-153 is currently considered one of the main national integration roads in Brazil. The stretch of this highway included in the future Concession is 624.1 km long, 598.3 km of which is a single lane. The newly approved proposal includes two additional sections (BR 414 and BR 080).
Read more
