USD 1bn highway concession auction in Brazil

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USD 1bn highway concession auction in Brazil

The National Land Transport Agency (ANTT) has published a notice for the concession auction of BR-364 and BR-365 highways in the Official Federal Gazette. The auction will take place on September 18 of this year in Sao Paolo stock exchange. The project is part of the Federal Government's Investment Partnerships Program (PPI).

The documents are available on ANTT website. Requests for clarification about the bidding must be made before 6 pm on July 12. And the initial proposals must be submitted by September 11. The auction is open to Brazilian or foreign legal entities, private pension entities and investment funds, which may participate individually or in a consortium.

The project comprises a total length of 437 km. The highway will go through 11 municipalities of the State of Goiás (Aparecida do Rio Doce, Cachoeira Alta, Jataí, Paranaiguara and São Simão) and six municipalities of Minas Gerais (Santa Vitória, Gurinhatã, Ituiutuba, Canópolis, Monte Alegre de Minas and Uberlândia).

The highway includes all elements that integrate its domain, including access points and loops, buildings and terrain, lanes, hard shoulder, works of art and any other elements, as well as the areas occupied by operational and administrative premises related to the Concession. The project works will include additional lanes, improvements to the roads, slopes and roundabouts in order to meet the safety and traffic conditions for the users. In addition to mandatory works, ANTT may request the possible execution of several improvements (roads, roundabouts, walkways, etc.) throughout the contract, if necessary, in the form of an inventory of improvements determined in the contract. The granted portion will have 9 operational bases, of which 3 will be customer service. The bases will include ambulances, water trucks and trucks for the seizure of animals.

The concession period is 30 years. The investment for the construction is BRL 2 billion (USD 513 million) and operational costs are BRL 2.51 billion (USD 644 million).

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