Parana launches us 1.5b highway PPP project

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Parana launches us 1.5b highway PPP project

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The state of Paraná in Brazil has launched a PPP tender process to widen, restore, maintain and operate state highway PR-323 (and adjacent roads PRC-487 and PRC-272) between Maringá and Access to Francisco Alves, in the northeast of the state.

Paraná roads department DER said in a release that the project has an estimated investment of R$3.6 billion (US$1.52 billion) during the 30 years of the concession contract. Adding maintenance and operations costs, the investment amounts to R$7.7 billion (US$3.5 billion). Land acquisition is included in the contract.

The 30-year concession involves duplication of 207km of highway. 162.5 Km will be widened during the first stage of the investment program and 44.3 km during the second stage.

The deadline for submission of bids is February 25, 2014.  Bids will be opened one day after.

The winner will be the company requesting the lowest monthly concession payment and the lowest tollbooth rate.

The tollbooth fee is capped at R$4.20 and when traffic reaches a maximum amount set in the tender documents, the additional revenues derived from this additional traffic will be shared with the state of Paraná.

The project involves the construction of 19 overpasses, 22 underpasses, 13 pedestrian walkways and nine bridges.

The PPP project was structured through a PMI carried out by Odebrecht Transport Participações S.A. who was authorized to work on the Feasibility study for the project in April 2013.

Tender documents can be found here: http://www.comprasparana.pr.gov.br/ (Choose à“rgão=DER)

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