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August 26, 2021

The Brazilian National Land Transportation Agency publishes invitation to bid for public concession of highway stretch

Administrative Law and Government Projects

The Brazilian National Land Transportation Agency (ANTT) published on August 19, 2021 the invitation to bid for the public concession of the highway stretch comprising BR-116/101/RJ/SP (Rodovia Presidente Dutra), BR-116/RJ, from the junction with highway BR-465, in the city of Seropédica (km 214.7), up to RJ/SP boundary (km 339.6), and BR-116/SP, from RJ/SP boundary (km 0) up to the junction with BR-381/SP-015, Marginal Tietê (km 230.6); highway BR-101/RJ, from the junction with BR-465, in the municipality of Rio de Janeiro (Campo Grande) (Km 380.8), up to RJ/SP boundary (km 599); and highway BR-101/SP – from RJ/SP boundary (km 0) up to Praia Grande, Ubatuba (km 52.1).

In a nutshell, the public tender aims at the concession of public service preceded by the execution of public projects, consisting of the exploit for thirty years of infrastructure and public service rendering of recovery, conservation, maintenance, operation, implementation of improvements and expansion of capacity. The evaluation criteria for the auction will be hybrid, combining the highest offer for granting the concession with the lowest price of toll, which shall have a stipulated minimum. The regulatory model will also be improved, adopting a hedge mechanism and greater clarity in the rules for early termination of the contract.

This is one of the most awaited infrastructure projects in the country, with estimated investment reaches nearly R$ 15 billion over a thirty-year contract. The project comprises 625 km long and connects the two major metropolitan areas of the country, São Paulo and Rio de Janeiro, from the southern coast of Rio de Janeiro to the city of Ubatuba (SP). Currently, Dutra’s concession belongs to CCR, which had a gross revenue of R$ 1.43 billion in 2019. The public notice also describes the need of incorporating innovations to enhance the safety of users and to decrease costs, such as stretches with “Free Flow” system, consisting of electronic collection of tolls without stopping traffic flow, seasonal tariff, discount for frequent users, remote management systems and intelligent lighting. The Brazilian Ministry of Infrastructure expects this new concession to reduce up to 35% the current toll. Among the interventions involved, we highlight the investment in 80.2 km of BR-101/RJ lane duplication, additional lanes, pedestrian overpass, cloverleaf interchanges, returns, roundabouts and grade separations.

The auction will take place at B3 on October 29, 2021. 

TozziniFreire Administrative Law and Government Projects’ team is ready to assist potential bidders.

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