- Country Brazil
- Estimated Investment USD 3,330.00 million
- Approved GIF Funding USD 7.42 million
- Sector Transport
- Project Type
Project Preparation and Structuring Activity (Feasibility studies)
- Implementing Partners IFC WB
- Expected Project Completion Date 30-09-2021
- Theme Connectivity and Integration
Challenge
Despite Brazil's success of private road participation, there were still barriers that limited competition between concessionaires as well as questions over the true value for money of the concessions to users under the previous concession model. Moreover, there was a need to develop a new concession structure that would prioritize road operation and follow international best practices. The project is expected to facilitate entry into the Brazilian highway market by operators and financiers not previously involved in the sector through competitive and transparent bidding process.
Solution
The GIF is working with the IFC and the World Bank to provide programmatic support to develop a new road concession model at federal leval and bring to market road transactions that are expected to raise over US$ 10 billion of private capital. The initial program of 4 transactions have already had 3 succesful biddings attracting international players to the Brazillian market. The Program has been expanded and may include up to 6 additional road projects.
Expected Impact
The Program is expected to create a new standardized and replicable model for highway PPPs in Brazil following international best practices, including improving quality and safety of roads infrastructure through innovative road management, including ITS and climate mitigation and adaptation elements.
