Brazilian government to launch tender for highway privatization

16 December 2005

Sao Paulo, Brazil, 16 Dec – The Brazilian government plans to launch a public tender for the privatization of 3,000 kilometers of highway by January 15, officials said Thursday.

The highways to be privatized are located in the states of Minas Gerais, Sao Paulo, Rio de Janeiro, Espírito Santo, Paraná and Santa Catarina, in the south and southwest of Brazil.

Sector specialists have said they consider the highways to be the most profitable in Brazil for private investors due to the large traffic flow they generate.

The Brazilian Ministry of Transport estimates that whoever wins the concessions will have to invest US$6.2 million over the 25-year lifetime of the concession contract.

Under the terms of the tender the winning company would have to present the lowest toll prices along with the largest offer for payment of the concession, the Ministry said.

Currently, Brazil has 35 private concession companies managing 9,700 kilometers of highway all over the country.

Highway company, Companhia de Concessões Rodoviárias (CCR), which is 17.9-percent owned by Portugal’s Brisa, is Brazil’s market leader, with six concessions totaling 1,455 kilometers of highway.

CCR has 28.9 percent of its capital on the stock market and its control is shared between Brazilian groups Andrade Gutierrez, Camargo Corrêa and Serveng-Civilsan and Portugal’s highway company, Brisa. (macauhub)