Brazil’s CCR competes for three road concessions valued at US$448 million

30 May 2006

Lisbon, Portugal, 30 May – Brazilian highway company, Companhia de Concessões Rodoviárias (CCR) is to compete for three road tenders in Brazil valued at between US$358 million and US$448 million, the company said.

Leonardo Viana, a CCR executive, told Portuguese financial daily Diário Económico that the tenders, for construction and concession of three roads with a total length of 1,340 kilometers.

Amongst the several concessions put out to tender, CCR chose the Fernão Dias road – between Sao Paulo and Belo Horizonte – Régis Bittencourt – which will link Sao Paulo to Curitiba – and BR-101, between Curitiba and Florianópolis.

The criteria for choosing these roads, according to Viana , was the traffic potential of the roads, with those selected located in one of the most densely populated as well as one of the most economically developed regions in Brazil.

According to Viana, the investments will be 60 percent financed by debt, 20 percent by company reserves and the remainder by charging road tolls along the three roads.

The program of public-private partnerships of which the three roads are a part totals some 4.7 billion euros, for around 3,000 kilometers of roads.

CCR is currently Latin America’s largest road concession holder and, if it wins the three tenders launched by the Brazilian government, it could double its network in Brazil in the medium term to almost 3,000 kilometers of roads.

As a result of the good performance of the Brazilin stock market and the concession market, CCR’s market capitalization has increased five-fold over the last four years to 3.5 billion euros.

Set up in 1998 by some of Brazil’s largest construction companies, CCR currently has as its main shareholders Novo Mercado, with 28.88 percent, Andrade Gutierrez Concessões with 17.42 percent and Camargo Corrêa, Serveng-Civilsan and Portugal’s Brisa, each with 17.90 percent. (macauhub)