Brasília – Road and airport infrastructure ventures in 2013 in Brazil can be summed up in one word: concessions. Throughout the year, 3,300 kilometres worth of highways were assigned to the private initiative – and the figure may reach 4,250 following the auction of an additional 936.8 km in road BR-040, between Brasília and Juiz de Fora (state of Minas Gerais), scheduled for Friday (27th). As a result, the year should close with an 81% increase in the highway network assigned to private enterprises.
Two airports have also been privatized: Galeão, in Rio de Janeiro, won by consortium Aeroportos do Futuro for R$ 19 billion (US$ 8 billion); and Confins, in the city of Belo Horizonte, for R$ 1.82 billion (US$ 770 million). The airport in Rio will remain under concession for 25 years, and the one in Minas Gerais, for 30 years. The concession scheme provides that the Brazilian Airport Infrastructure Company (Infraero) will retain a 49% stake in the venture.
Thus far, five airport concessions have been implemented under the Logistics Investment Program (PIL, in the Portuguese acronym), including the units in Guarulhos and Campinas, both in the state of São Paulo, and one in Brasília, whose concessions became effective in 2012. The government plans on investing in infrastructure at 270 regional airports. In August, the minister of the Secretariat for Civil Aviation of the Brazilian Presidency, Moreira Franco, announced that the concession calls are nearing completion for the first 45 airports to see investment in runway and patio expansion, and flight safety technology improvement.
Four roads have been assigned in concession contracts in 2013 – the BR-040 auction will drive the number up to five. In September, the first PIL concession was granted: Consórcio Planalto won the auction of a 436.6 km stretch of the BR-050 highway, connecting Cristalina (Goiás) to the border between Minas Gerais and São Paulo. The highway will be duplicated.
In the same auction, the government offered part of the BR-262 between the states of Espírito Santo and Minas Gerais, however no bids were made. In November, an 851 km stretch of BR-163 was auctioned, between the border of Mato Grosso and Mato Grosso do Sul MT-MS and the city of Sinop (Mato Grosso). The winner was Odebrecht. The road is heavily used for transportation of grain production from the Midwest, and will also be duplicated.
In early December, Triunfo Participações e Investimentos won the auction for a 1.176,5 km lot encompassing the BR 060, 153 and 262 roads, between Brasília and Betim (Minas Gerais). Out of that total, 630.2 km were stretches of BR 060 and 153, extending from the crossing with a BR-251 (Federal District) to the Minas Gerais-São Paulo border. The 546 km in BR-262 extend from the crossing with BR-153 to the crossing with BR-381 (Minas Gerais). In this road, 529 km have already undergone duplication works, and an additional 648 km will be added by the concessionaire.
On December 17, Companhia de Participações em Concessões, a company controlled by Andrade Gutierrez, won the auction for an 847.2 km stretch of BR-163, which crosses the state of Mato Grosso do Sul to the city of Dourados, on the border with Paraná. The road will have 807 km duplicated. Similar to a different part of the same road, auctioned in November, this stretch is located further south and is also used for carrying grain grown in the Midwest.
The road concession program was launched in August 2012 and covered 7,000 km worth of roads in the Southeast, Northeast, and Midwest. All concession calls provide for duplication of all roads, recovery maintenance, conservation, operation, improvements, and capacity expansion. Tolls will only be allowed after 10% of the duplication works have been completed.
*Translated by Gabriel Pomerancblum
