USD3.4bn road concession awarded in Brazil
Transport Agency of the State of Sao Paulo (Artesp) in Brazil has announced consortium formed by Patria Investments and GIC sovereign wealth fund as winning bidder for Piracicaba-Panorama, also known as Pipa road concession in Sao Paulo.
The winning consortium has offered twice the bid of the only rival in the tender - Ecorodovias. The group has offered a grant of BRL 1.1 billion (USD 268 million), which will be paid to Sao Paolo Government, above their competitor Ecorodovias, which offered BRL 527.05 million (USD 128 million).
The winning consortium will manage the largest concession in the country to date for 30 years. It will have to invest BRL 14 billion (USD 3.4 billion) into the project.
The concession involves modernization, expansion, operation, maintenance, and implementation of the State Road System between the cities of Piracicaba and Panorama in Sao Paulo state of Brazil. The project is composed of a single lot of approximately 1,273 km of runways, making it possible to improve the balance of the highway system. The scope of the project includes building additional lanes, shoulders, news access points, pavement recovery, walkways and bike paths among other works.
The road will be the first Zero Carbon Highway in Brazil. The concession provides for offsetting carbon dioxide emissions from operating services. Emissions will be assessed and should be offset by generating clean energy or acquiring carbon credits. The concessionaire will equip the roads with dedicated Wi-Fi (wireless data network) throughout the network to provide the user with information about the system, for example updating the traffic situation and enabling medical and mechanical distress triggering. The highways will be fully monitored by smart cameras and there will be moving weighing for vehicle surveillance.
The contract is expected to be signed in the first half of 2020.
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