Brazil facing road concession changes

The Brazilian authorities are looking to renegotiate contracts for a series of state road concessions that were auctioned up to 15 years ago. The intention is to improve the roads while cutting the rate of return for the concession holders, with controls on tariff rates to restrict price increases for users.
March 22, 2012 Read time: 1 min
The Brazilian authorities are looking to renegotiate contracts for a series of state road concessions that were auctioned up to 15 years ago. The intention is to improve the roads while cutting the rate of return for the concession holders, with controls on tariff rates to restrict price increases for users. The contracts for road concessions agreed back in 1995 allowed have holders a rate of return of up to 20%. By comparison, the road concessions agreed in 2000 allowed return rates of 8%. The Brazilian Government may want to reduce the return rate for concession holders to just 6%, as well as requiring up to US$1.34 billion in upgrades to the various state roads. Current concession holders may lose their contracts should they refuse to make the changes, although the legal process for such an action would have to be confirmed.

Related Content

  • Analysing intelligent speed adaptation benefits
    April 12, 2012
    Oliver Carsten, Professor of Transport Safety at the Institute for Transport Studies (ITS) at the University of Leeds, UK, discusses Intelligent Speed Adaptation, looking at its safety potential
    Read More
  • Mumbai’s new coastal transport link
    July 6, 2022
    Mumbai’s new coastal road presents an ambitious and challenging project that will help improve the lives of the city’s inhabitants - Mike Woof writes
    Read More
  • Machine control technology round table discussion with Leica Geosystems, Topcon and Trimble
    January 4, 2022
    In this, the first in a series of top-level roundtable discussions led by World Highways, editor Mike Woof and editorial director Geoff Hadwick talk machine control technology with three world-class experts from Leica Geosystems, part of Hexagon, Topcon and Trimble. Find out what these key opinion leaders are thinking on six vitally important topics. Let them help you stay ahead of the game.
    Read More
  • Russia seeks outside investment in road building
    November 6, 2012
    The Russian road building industry is on the verge of big changes as it bids to improve quality and speed of construction says Eugene Gerden The Russian road building industry is on the verge of big changes as the national government considers creating conditions to attract foreign companies to build roads in the country. According to a recent order of President Vladimir Putin, due to poor quality and high cost of road construction, there is a need for the development of a mechanism to attract foreign compa
    Read More

Highlighted Content