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Arteris, Abertis’ subsidiary in Brazil, has won the contract for the development of the Itaporanga-Franca Lot, Rodovias dos Calcados (Road of the Shoes) road under PPP scheme.

Arteris presented a bid of BRL1.23 billion (US$382 million) beating out from competition companies as Ecorodovias, which submitted a BRL727-million (US$229 million) offer for the road project.

As we reported, in late December the State Government of São Paulo, through Artesp (Transport Agency of São Paulo State), launched the tender process to seek a private partner for the road project development, which involves 720 kilometers of roads throughout 35 cities of the state.

The project will feature numerous technological innovations on operation processes and discounts on toll rates, as well as theduplication of 274 kilometer of roads between the Central and Bauru regions.

The concession involves an investment of approximately BRL5 billion (US$1.5 billion) over 30 years. Of this total, BLR1 billion (US$305 million) goes to the main works of expansion of the road network and BLR2.4 billion referring to the restoration and conservation during the 30 years of contract.

The concession attempts to respond the demands of all these cities that are crossed by this project. It also foresees revisions in the contract every four years, which may facilitate new investments that will be managed in accordance with future needs or future reality. That will mean that new investments, such as duplication or improvement of roads accesses, can be created, brought forward or canceled during the tenor of the contract.