Brazil launches tender for US$1.95 billion road concession

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Brazil launches tender for US$1.95 billion road concession This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.Brazil's national ground transport agency (ANTT) has launched a R$4.61 billion (US$1.95 billion) tender for a 30-year concession to upgrade, expand, maintain and operate the federal highway BR-101 in the northeastern state of Bahia, between kilometer 166 (BR-324 junction) and kilometer 939 (BA-698 junction)The concessionaire will manage a road stretch of 772km passing through 52 municipalities.Widening of the road stretch is expected to be completed by the fifth year of the concession. The highway will have nine sets of toll booths and toll collection is allowed after 10% of the works are completed.The total toll revenue expected during the concession period is R$17.2 billion. The annual rate of return for the concessionaire will be around 7.2%.Tender questions can be submitted from September 2 to september 6. According to the tender documents, proposals are due October 17 and the auction will take place on October 23.This tender process is the third launched during the last 30 days after ANTT released tender documents for two other federal highway concessions worth a total R$5.1 billion (US$2.22 billion) in early August.Source: Tender documents & Announcement (ANTT)

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