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Brazil launches new transport infrastructure investment plan

The Brazilian government has announced a new transport infrastructure investment plan involving the concession of motorway operations and modernisation of the railway sector. The private public partnerships are predicted to lead to an investment of US$65.68 billion (BRL 133bn) in the next 25 years, including US$ 39.63 billion (BRL 80bn) to be spent in the first five years of the contract.
August 30, 2012 Read time: 3 mins
RSSThe Brazilian government has announced a new transport infrastructure investment plan involving the concession of motorway operations and modernisation of the railway sector.

The private public partnerships are predicted to lead to an investment of US$65.68 billion (BRL 133bn) in the next 25 years, including US$ 39.63 billion (BRL 80bn) to be spent in the first five years of the contract. Private investors will be operating some 7,500km of roads, with new rules for the charging of tolls to be in force in the near future. In addition, the plan encompasses the modernisation and construction of 10,000km of railway lines.

The agency Empresa de Planejamento e Logística- (EPL)' will be advising the Government and the president on management issues related to critical infrastructure. It will also carry out studies and manage the construction and planning of roads, railways, ports and airports. This new official state plan for infrastructure, the 'Programa de Investimentos em Logística', will put into private concession a total of 7,500km of national roads, some 5,700km split in seven lots and 1,800km in two lots, BR-040 (Brasília-Juiz de Fora) and BR-116 (Minas Gerais), whose tenders terms were already released. The new concession contracts will have the tender terms released in March 2013 and the negotiations will take place in April. Contracts should be signed by July 2013.

Companies which win the concession to operate national roads can only collect toll fees when 10% of the works are executed. It is understood that 5,700km of roads require investment to expand the number of lanes, such as the road BR-101 between Porto Seguro and Salvador (Bahia State), the road BR-050 between Cristalina and uberlandia and the whole stretch between Anapolis and Palmas, which is part of the road BR-153 (Goias and Tocatins). The winner of the concession will be elected through the price of the toll at stake, the lesser the charge the higher chance to become the winner.

Plans are in hand for an immersed tunnel close to Sao Paulo in Brazil. The tender process is being initiated to find a consultancy company prepared to handle the engineering design work. The tunnel will connect Santos and Guaruja. The $6.1 million engineering tender is being offered by Brazilian company Desenvolvimento Rodoviario (2529 Dersa). The winner of the tender will work with Dersa to help manage the project. A consortium, Engevix - Planservi - Themag Tunel Submerso, is developing the project.

Key improvements will be made on stretches of key roads in Brazil’s Parana State. In all, repairs and maintenance will be carried out to 16 stretches of road, totalling some 4.800km. This work is expected to cost $29 million. However Parana State has a total budget for overall road improvements of $419 million. Of this, actual road repairs will cost around $203.25 million. Some $144 million will be used for road preservation works, $67 million for cleaning drainage systems and $129 million to improve safety and signals.

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