Brazil to auction 8 ports, 30 highways: Correction

• Friday, July 24, 2020
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[Ferro-Alloys.com] Brazil's government is targetting eight port terminals for liquid and solid bulk and 30 toll roads among assets to be privatized by 2022 under the Investment Partnership Program (PPI).

 

The government is seeking to raise at least R$2,6bn ($480mn) from the sales, but it has not yet defined the target values for all projects.

 

Created in 2016, the program aims to accelerate the transfer of public infrastructure to private enterprise to boost investments in poorly funded and developed infrastructure to boost commerce. Currently, there are 131 projects under consideration, both brownfield and greenfield assets, that also include oil and gas, waterway, railroad, energy, mining and airports sectors.

 

Preliminary target values for port auctions total R$681mn and R$1.9bn for the highways by the end of 2022.

 

Two areas for the shipping and storage of bulk liquids and gases will be auctioned in Santos, the largest port complex in Latin America, in the fourth quarter of this year. For one of them, the minimum value is set at R$210mn.

 

Other port areas are in the states of Alagoas, Rio Grande do Norte, Ceara, located in Brazil's northeast region, and in Santa Catarina, in the south of the country, according to the ministry of economy and the PPI special secretariat. The targeted investments were not detailed.

 

In the first quarter of 2021, auctions are planned for three areas in the port of Alagoas whose value is set at R$254mn; one in Rio Grande do Norte, targetting R$162mn, and one in Ceara targeted at R$57mn, all in the northeast region. For these ports, the concession period will be for 25 years.

 

An area in the port of Itajai, in Santa Catarina state, in the south of the country, will be put out to bid in the third quarter of 2022. The investment has not been defined by the authorities, but the concession period will be 35 years.

 

For the highways, only a stretch that passes through the port of Itaqui, important for handling liquid bulk in Maranhao state in the Amazon basin region, is scheduled for auction. That will be in the second half of 2022.

 

The other highways are in the states of Parana, Para and Maranhao, also close to port areas. The National Land Transport Agency will be responsible for promoting and conducting the auctions.

 

For the auction of the highway between the key soybean and corn growing states of Mato Grosso and Para, in the fourth quarter of 2020, the government requires a minimum amount of R $1.89bn and, subsequently, investments of R $1bn over 10 years.

 

In the third quarter of 2021, there will be a bidding process for 21 stretches of highways in Parana, for R $33.6mn, but the term of the concession has not been defined.

 

For two stretches of federal highways, in Rondonia and Mato Grosso states, the ministry of economy has asked for support from other federal government agencies to obtain environmental licenses.

 

Source: Argus media

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