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

  • Warm asphalt is a hot topic
    June 12, 2012
    Lower temperature mixes – a key advance in bitumen technology - Kristina Smith reports Warm and cold mix asphalts were not on the original agenda for this year’s Eurasphalt & Eurobitume Congress, being held in Istanbul in June. But when the organisers took a look through the papers submitted for their sustainability-themed event, they realised that this is one of the industry’s hottest topics. “We hadn’t quite anticipated the high level of research in this area,” says E&E’s technical programme committee c
    Read More
  • Public-private participation for highway law enforcement
    April 18, 2017
    In some countries, public-private partnerships for road traffic law enforcement are helping to greatly reduce traffic fatalities. But careful implementation is essential, according to a new white paper. Big brother is watching you. Speed cameras are just a cash cow for local authorities. Police use them to keep their speeding ticket statistics high. The list of suspicions goes on. But there is nothing suspicious about road deaths, says Philip Wijers, chairman of the sub-committee on enforcement at the US-ba
    Read More
  • S&P Global Rating: credit stability for toll road operators
    August 14, 2017
    The outlook is generally stable for business conditions and credit quality for toll roads worldwide, according to the latest survey from ratings agency S&P Global.The exception is the US where the overall outlook is “positive”, noted the report S&P Global Ratings' 2017. The 21-page report considers broad economic and industry-specific trends. It looks at economic conditions, demographic trends and geopolitical risks that affect the movement of people and goods. “We expect stable or improving, but still frag
    Read More
  • Improving safety for vulnerable road users
    January 2, 2013
    Dutch-style cycle safety for other European nations – Mike Woof writes A recent event held in London during October was aimed at improving safety for vulnerable road users. Called Love London go Dutch, the event was intended to highlight some of the experience from Holland in reducing risk rates for vulnerable road users such as cyclists. Similar events were held in other UK cities, while other major European cities such as Paris that are seeing an increase in cycling also have a lot to learn from Dutch exp
    Read More

Highlighted Content