Brazil: New Infrastructure Investment Programs for 2 Billion Euros
As part of Brazil’s investment partnership program, launched in 2016 to broaden public-private partnerships, mostly for infrastructure development, 25 new investment projects – to be completed within the first 100 days of 2019 – were announced recently, worth a total of 8.7 billion reais (about 2 billion euros).
The principal projects approved concern a 30-year concession for 12 airports and the Norte-Sul railroad concession, that includes a 1,537 km line from Porto Nacional to Estrela D’Oeste, for a total investment of up to 1.35 billion reais (about 710 million euros). The concession’s minimum value will amount to 1.35 billion reais (about 320 million euros) for a 30-year contract, which will be auctioned off on 28 March 2019.
The largest railway connections in the first six months of 2019, will include the Ferrograo concession: a railway line from Sinop (Mato Grosso) to Miritituba (Para’) to be built from scratch.
The government stated that the contract for the Ferrograo concession will have a duration of 65 years, much longer than the other concessions, in addition to a 30-year exclusive operations management contract once the work is completed. The contract is estimated to be worth a total of 12.6 billion reais (or 3.7 billion euros).
In addition to railways and airports, interesting investment opportunities also concern ports, one of the sectors that are key to improving the competitiveness of agro-food and mineral exports, the most important items in Brazil’s trade balance. In particular, the Government also announced concessions for 10 terminals: 3 in Cabedelo, Paraiba; 1 in Vitoria, Spirito Santo; 5 in Miramar, Para’; and 1 in Vila do Conde, Para’. For the last two terminals, the concession adjudication date has been set at 5 April 2019.
