Crescer: Brazil’s infrastructure tender program

As Brazil moves on with a new government, a more business-oriented environment is being presented. President Michel Temer has planned official trips to the US, Europe and Asia for the coming weeks on pursuit for foreign investors.

In the suitcase, he is taking the recently announced plan for concessions on 34 infrastructure projects: CRESCER (Project Grow).

Having learned from previous government tender procedures, Temer and his group of ministers have decided to focus on essential demands and improve the bidding rules.

Thence, next year’s tenders are expected to be released in English and Portuguese versions. Among   the environmental licensing must be clear before a call for tenders is announced. Another rule announced by the government is the expanding to hundred days the period between the release of bidding rules and the holding of the auction.

Airports

Over the past decade, Brazil has seen a wide concession on airport management, mostly on large cities that hosted the Football World Cup. However, four cities still have their airports under administration by federal government: Fortaleza, Salvador, Porto Alegre and Florianópolis. All four are included in the latest timetable for concessions.

Roads

On this phase of the project, highways concessions have been limited to two stretches in the new program. They are BR-364/365 between Jataí in Goiás and Uberlândia in Minas Gerais and BR-101 in Rio Grande do Sul currently managed by Concepa, which will be re-auctioned. Other troubled existing concessions may also be re-auctioned in the second half of 2017.

Railways

Grains are the main attraction to the railways in Brazil. This commodity is carried from the western plantations to the ports. Hence, three railways concessions are included: North-South, FIOL (West-East Integration) and Ferrogrão. The first two are being built by state company Valec and should be handed over for management and operation by the private sector.

Ports

Also presented in the program, auctions for two port terminals in the Northern state of Pará (fuels) and one in the state of Rio de Janeiro (wheat).

Dams

Cemig, a Minas Gerais state energy supplier company, will have its São Simão dam re-auctioned as well as Miranda and Volta Redonda, in the state of Rio de Janeiro.

In addition, on the energy sector, Temer wants to hold the fourth bidding round of marginal oil and gas fields under the concession regime by June 2017. Under the same regime, by December 2017 it intends to hold the 14th bidding round of exploratory oil blocks.

In the Southern state of Rio Grande do Sul, where NBSO has an office, a coal based reserve [one of the largest in the world] is also on the list for bidding. Phosphate in the Northeast and Copper in the mid-west are also reserves scheduled for intentions.

Lastly, water and sewer services for cities in the states of Rio de Janeiro, Rondônia and Pará are the new inclusions of the list. But those are intended to be released only in 2018, last year of the government.

For in-depth details, please contact NBSO Brazil at info@nbso-brazil.com.br.