Today, Brazil takes a new approach to infrastructure auctions. Government gives some breathing room to small companies. Brazil to hit 400,000 coronavirus deaths today.
String of highway concessions begins in Brazil
The Brazilian government will auction an 850-kilometer stretch of the BR-153 highway today, connecting the agricultural states of Tocantins and Goiás. This will be the first of six roadway auctions scheduled between now and Q1 2022, which include connections in Brazil’s wealthy Southeast and South regions.
Why it matters. The BR-153 auction is the least attractive out of all those scheduled for the next 12 months, but the government will use it to test a new formula for roadway concessions: combining toll fares and grants.
- First, proposals will be analyzed according to how much of a discount they are willing to offer on the tolls charged to drivers. If more than one bid offers the maximum discount of 16.25 percent, the company pledging to pay the highest premium will win the auction.
- The model introduces discounts for frequent users, allowing residents to pay less on tolls. The first time a driver utilizes the highway, they will be charged the full price, which is then gradually discounted on each...