Page 80 - InvestmentGuideBrasilEng

HIGHWAYS

The following conditions will apply to the con- Other useful links:
As the fifth-largest country in the world, it is not comparatively high level compared to other conti- cessions for highways:
surprising that Brazil has one of the world’s larg- nental-sized countries such as Australia, Canada, ? www.transportes.gov.br -
est road networks, with approximately 1.7 million Russia and the United States, for instance, where ? Concessionaires will be selected through Ministry of Transportation
kilometers of roads. At present, however, less than rail plays a stronger role in the transportation ma- public auctions following a public consultation
15% of the national road network is paved, mean- trix. This creates heavy demands for quality high- period. The award will be made to the bidder ? www.antt.gov.br - the ground
ing that road surfacing and maintenance services way infrastructure. According to JPMorgan, traffic that offers the lowest toll fee. Brazil operates an transportation regulatory agency
are badly needed to help connect more parts of the grows on average between 1 to 1.5 times GDP. open-toll system with fares tied to inflation.
country and improve transportation efficiency. A total of nine concession contracts will be ? www.dnit.gov.br - National Transportation
Approximately 60% of total freight and 45% awarded, covering highways located in the states ? Tolls may only begin to be collected Infrastructure Department, which contains
of passenger transportation in Brazil is carried of Bahia, Espirito Santo, Goias, Mato Grosso, once at least 10% of the construction many useful studies and maps covering Brazil’s
over the national highway network, which is a Mato Grosso do Sul, Minas Gerais and Tocantins. work has been completed. land and water transport infrastructure assets.

? No concession fee will be charged, allowing
the concessionaire greater leeway to charge
lower toll fares, as well as accelerating
implementation of the project.

? Concessionaires will be responsible for
the construction and maintenance of the
sections of highway covered under the
concession contract, which includes traffic
management systems, customer care services
and emergency support assistance.

For highway concessions, the construction of
3 additional lanes, bypasses, pedestrian crossings,
5
1 side roads, overpasses, and bridges is expected
4 to be carried out in the first five years. Brazil’s Na-
tional Development Bank (BNDES) may finance
HIGHWAYS 9 65% to 80% of the concessionaires’ investment

7 8 needs. The loans will have a three-year grace pe-
1 BR - 101 BA 7 BR - 060 DF/GO, riod and a 20-year repayment term. The annual
2 BR - 262 ES/MG BR - 153 GO/MG 6 2 charges will be based on Brazil’s Long-Term Inter-
est Rate (TJLP), set at 5% per year in January 2013,
3 BR - 153 TO/GO BR - 262 MG plus additional interest of up to 1.5% per year.
4 BR - 050 GO/MG 8 BR - 116 MG For more information on investing in Bra-
5 BR - 163 MT 9 BR - 040 DF/GO/MG zilian toll highways, visit the Brazilian Logistics
6 BR - 163 MS, & Planning Corporation’s website for investors:
BR - 262 MS, IN PROGRESS www.logisticsbrazil.gov.br
BR - 267 MS EXISTING

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