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Concessionaire will have 14 years to duplicate roads

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Federal government is due to publish a Provisional Measure until the end of this week (September 15th) with changes in the contractual conditions of the highway concessions tendered.

Concessionaires of the roads tendered in the third concession round (between 2013 and 2014), during the government of former president Dilma Rousseff, will have up to 14 years to double the roads, depending on the flow of vehicles on the roads.

Contracts provided for the complete duplication of the extracts in up to five years. In return, investors will have the current concession term (30 years) reduced or they will have to charge a lower toll rate.

Announcement was made by the Minister of Transport, Ports and Civil Aviation, Mauricio Quintella, on Tuesday during the opening of the 10th Brazilian Congress of Roads and Concessions, sponsored by ABCR (Brazilian Association of Highway Concessionaires) Brasilia.

President of the ABCR, César Borges, states that the Provisional Measure can represent the saving of most of the concessions of that third stage, even if there is eventual compensation in the tariff. “The companies want a longer term, once the long-term financing of the BNDES (National Bank of Economic and Social Development) is lacking, and the conditions are different. In framing the cash flow, with lengthy investments, a new model which will allow the existence of the concession.

 

At the ABCR event, Minister Quintella reported that the federal government is preparing a decree to regulate the negotiated return of concessions. Invepar, the controller of the BR-040 concession in the section between Brasilia (DF) and Juiz de Fora (MG), announced last Monday that it will begin the negotiated return process for future highway launch.

In a note, the concessionaire said it will maintain services such as 24-hour inspection and medical and mechanical assistance, in addition to maintenance of the road. The company attributed to the economic crisis and “changes in the conditions foreseen in the tender” the reason for the decision to return the highway.

Concessions plan provided for the active participation of the government in financing the works, especially through BNDES loans. With the economic and fiscal crisis, the government had difficulties to carry out these transfers, which generated complaints from the concessionaires of lack of resources for works.