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Brazilian Concessions Have only 38 per cent of New Investments

03/08/2017 - 12h03

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JULIO WIZIACK
GUSTAVO URIBE
MARINA DIAS
FROM BRASÍLIA

The brazilian government announced on Tuesday (7) 69 concession and privatization projects over the next five years, which are expected to bring investments in excess of R$ 45 billion (US$ 14.3 billion).

Most of these resources should only enter the economy after 2018.

These projects are part of the second package of the PPI (Investment Partnership Program, in its Portuguese acronym).

In this lot, only the BR-101 highway, in Santa Catarina, three port terminals, two in Paranaguá (SP) and one in Itaqui (MA), and 35 lots of transmission lines are new.

Together, they must generate investments of around R$ 17 billion (US$ 5.3 billion).

These auction notices should be ready this year, but only the transmission lines will be auctioned in 2017.

The investment in these lines sums up R$ 12.8 billion (US$ 4.1 billion) and must be made mostly over five years, when the biggest works are planned.

The other R$ 28 billion (US$ 8.8 billion) announced refers to concessions that the government intends to auction again or renew in advance.

These investments will be made during the term of these concessions, between 25 and 30 years.

In this group are three highways: Nova Dutra, currently managed by CCR, connecting São Paulo to Rio; The CRT, under the management of OAS and that connects Rio to Teresópolis; And Concer, managed by Triunfo group, that connects Belo Horizonte to Rio. These contracts expire in 2021 and the government decided to resume the concessions.

The current concessionaires threaten to go to court against the federal government for "breach of contract".

Translated by MARINA DELLA VALLE

Read the article in the original language

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