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New round of concessions announced

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9/13/2016 4:38 PM Demarest News

New round of concessions announced

The first round of concessions of infrastructure of Temer's government was announced today (13).

The announcement was made during the first reunion of the Investments Partnership Program (PPI)'s council and includes 25 projects. Some of the projects had already been announced by the ex-president, such as the highways – which integrated the Logistics Investment Program (PIL).

The main projects announced are:

1. Airports:

Meeting the market's expectations, the airports of Porto Alegre, Salvador, Florianópolis and Fortaleza, which had already been announced in 2015, will be auctioned. The invitations to bid shall be published on the fourth quarter of this year and the auctions held on the first quarter of 2017.

2. Highways

Only two streches will be auctioned: BR-364/365, which links Jataí-GO to the west border of Uberlândia-MG; and BR-101/116/290/386, which goes from the countryside of Rio Grande do Sul up to the border with Santa Catarina. Both auctions will likely be held on the second semester of 2017.

3. Railroads

The railroads concession projects will also be resumed, including stretches of railroad Norte-Sul, between Porto Nacional-TO and Estrela d'Oeste-SP; Ferrogrão, between Sinop-MT and Miritituba-PA; and Ferrovia de Integração Oeste-Leste (West-East Integration - Fiol) between Ilhéus and Caetité (BA).

The railroad actions are also likely to take place on the second semester of 2017.

Besides the transport concessions, the government also announced the concession of Eletrobras' distributors, gas and petroleum fields and hydroelectric plants. The auctions are scheduled for the second semester of 2017, with the exception of the distributors – scheduled for the first semester of 2018.

In order to attract foreign participation, the invitations to bid will be published in both Portuguese and English. Besides, the interested parties will now have a longer time limit to present their proposals: 100 days from the publication of the invitation to bid.

These new rules are part of the "Grow Project", which brings innovations regarding the contracting of long-term financing. According to the Federal Government's agency, "the project is based on 10 guidelines which will assure that the concessions take place in a 'competition spirit' among businessmen and transparency and foreseeability on the government's side".

Demarest Advogados

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