The government of Parana state and Federal government of Brazil has finalized a procurement model to auction highway concessions in Parana state. The concession is divided into six lots that total 3,300 kilometers of roads. The concession comprises 35% state highways and 65% federal highways. The estimated investment value for the megaproject is BRL44 billion (US$8.40 billion)

The finalized concession model will foresee lowest rate, with no discount limit and with a guarantee of works based on a user insurance – financial support to guarantee the execution of the contract. The value of the insurance is proportional to the percentage of discount granted to the rate. The model will have three levels of private investment contribution: from 1% to 10%, from 11% to 17% and from 18%. For this, companies need to invest BRL15 million (US$2.86 million) per percentage point up to 10%, BRL60 million (US$11.46 million) per percentage point up to 17% and BRL150 million (US$28.6 million) per percentage point from 18%.

The authority is expecting to reduce toll tariffs by 50% or even more with a guarantee of execution of the works. The auction for the all six lots is scheduled to take place in first quarter of 2022.