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

  • Kosovo's award-winning green highway construction
    March 20, 2012
    A new highway is proving an economic lifeline for the tiny country of Kosovo – Mike Woof reports. Road projects in Europe rarely meet such widespread public approval and support as the new Route 7 highway being built in the new Balkan state of Kosovo. The first sections of the new road opened to traffic in November 2011, with locals turning out in large numbers to celebrate the event. The official opening was carried out by the country’s prime minister Hashim Thaçi, president Atifete Jahjaga, and members of
    Read More
  • Key report calls for 20-year transport infrastructure plan
    March 14, 2012
    A key transport industry report has called for a 20-year transport infrastructure plan, while also highlighting the short-term need for more private sector investment.
    Read More
  • New US toll road regulation criticised
    April 10, 2012
    High road toll increases bring threat of new regulation in US - *Bob Poole reports. Large toll rate increases have been implemented recently by the Port Authority of New York and New Jersey, justified in part to help pay for its World Trade Center project. In response, a bill was introduced in Congress that would allow the Secretary of Transportation to regulate tolls on every bridge on the country's Interstates and other federally aided highways.
    Read More
  • Brazilian road concession package awarded
    November 23, 2022
    A major Brazilian road concession package has been awarded.
    Read More

Highlighted Content