COUNTRY | Brazil
REGION | Americas
SECTOR | transport
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 4 Building Resilience, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: Wider economic benefits, 2: Operation and maintenance, 2: Risk management, 3: Environmental Impact Assessment, 3: Environmental Impact Mitigation, 3: Disclosure of environmental aspects, 4: Disaster risk insurance, 5: Job creation, 5: Occupational health and safety, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Anti-corruption, 6: Access to information and data, 6: Legal and Regulatory Frameworks, 6: Institutional Framework of infrastructure investment, 6: Transparency of infrastructure investment, 6: Enabling Environment
Overview
The project consists of a road concession procurement for exploiting infrastructure and public services provision for recovery, operation, maintenance, monitoring, conservation, implementation of improvements and maintenance of the service level of the BR-262/ES Highway, in the road section between BR-101 (B) - Viana/ES - up to the frontier between ES/MG; BR-262/MG, in the road section between ES/MG frontier with BR-381/MG - Jo?£o Monlevade/MG; and BR-381/MG, in the road section between Belo Horizonte/MG to Governador Valadares/MG. The aforementioned section has a length of 686.1 km, changing to 670.6 km after works for rectifying layout.
The project is part of a broad Brazilian highways concession programme pipeline that aims to improve the national road network.
The daily project demand is 189,000 vehicles. The expected investment CAPEX is USD 1.54 billion, while the investment OPEX is USD 1.38 billion. The contract term is 30 years.
Timeline
Studies – 07/17/2019
Public Consultation – 08/05/2020
TCU (Brazil's Federal Court of Accounts) assessment - In progress
Bidding documents – Q4 2020
Auction – Q1 2021
Contract – Q2 2021
Investments – 1 st phase – 2021 - 2029
Investments – 2 st phase – from 2037 to 2042
Operation – From 2021 to 2051
Relevance to QII
Principle 1: Sustainable Growth & Development
The project objective is to improve the connectivity of the Brazilian logistics. The concession contract investments obligation has been defined according to future demand, taking into account a fair price for the infrastructure usage. There has been a public hearing in which stakeholders had the opportunity to contribute with the project designing.
Principle 2: Economic Efficiency
Construction and O&M are bundled in the same contract in order to maximise the economic benefits
Principle 3: Environmental Considerations
The execution of any investment is preceded by an environmental license. Environmental impacts, as well as the impact of mitigation measures are assessed previously of any investment.
Principle 4: Building Resilience
Insurable risks are a responsibility of the private partner, maximizing risk mitigation by encouraging the contracting of insurances.
Principle 5: Social Considerations
Safe and healthy occupational conditions are mandatory in the project execution and operation. There will be discount on the frequent user fee, which will favour those who make small trips between nearby municipalities.
Principle 6: Infrastructure Governance
The key point for the governance is transparency during all phases of the concession process, from the structuring decision to the contract execution phase. The studies are fully disclosed. There is active participation of TCU (Brazil's Federal Court of Accounts) from the structuring to the operation stage. The project is qualified in the Investment Partnerships Program (PPI), and for this reason is considered as a national priority.
Benefits
According to Feasibility Assessments, Public Notice draft and Contract draft disclosed at the Public Hearing, out of which 590.5 km shall be converted into a four-lane highway with approximately 200 km between the 3rd and 8th year and the remainder between the 16th and 21st year. Along the concession, 131.3 km of marginal roads, 138.1 km of additional lanes, Manhua?ßu ring road, with 9.7 km, 45 slope intersection devices, 3 tunnels and 50 walkways are also planned.
Infrastructure quality improvement
Operational cost reduction
Reduction of traffic jams and users journey time
Reduction of accidents and casualties
Metrics
Success is measured and reported by ANTT (land transport regulator) and TCU (Brazil's Federal Court of Accounts)
Name of Institution
Investment Partnerships Program (PPI) Secretariat
Website URL