Infrastructure News

02/19/2020

New procurement plan approved for $1.7bn road project in Brazil

Brazil's national land transport agency ANTT has approved the proposal for BR-153/080/414/GO/TO road concession connecting the states of Goiás and Tocantins. BR-153 is currently considered one of the main national integration roads in Brazil. The stretch of this highway included in the future Concession is 624.1 km long, 598.3 km of which is a single lane. The newly approved proposal includes two additional sections (BR 414 and BR 080).

The BR-153 highway concession has already been granted in 2014 to Grupo Queiroz Galvão but was canceled and returned to the Federal Government's management in 2017 due to the concessionaire's inability to fulfill the sealed commitments.

This is the reason why the concession project was redone and brought to a public hearing last year. The new concession will incorporate changes introduced in the new contracts. The contracts no longer provide for mandatory duplication of stretches within a certain period. But they create the “differentiated toll tariff” modality: more expensive on duplicate stretches than on single lane. The proposal is to encourage the concessionaire to duplicate to increase its revenue.

For this new round of road concession, the public notices will be published in Portuguese and in English, favoring the participation of foreign companies. Stricter rules for contractual changes have been inserted, whereby works can only be included in the concession through five-year revisions (except for road safety reasons); and the introduction of a risk mechanism shared between the concessionaire and the Granting Authority (ANTT).

The Concession will directly impact 38 municipalities in the states of Tocantins and Goiás. The investments resulting from the new concession will improve the level of the service offered, ensuring greater fluidity and reliability of the road service. There will also be a favorable impact on the security of cargo and passenger transport, reducing the occurrence of accidents, as well as influencing travel time and logistical costs between the Mid-North and the Central-South region of the country.

The Concession will have a term of 30 years and will consist of the exploration of the infrastructure and the provision of the public service of recovery, conservation, maintenance, operation, implementation of improvements and expansion of capacity.