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Government and transportation concessionaires discuss rebidding

CONCESSIONS

Decree regulating a law on the theme is expected for the coming days
published: Aug 16, 2018 06:45 PM last modified: Aug 16, 2018 06:45 PM

Federal government authorities and representatives of concessionaires met on Monday (13 August) to discuss a new decree regulating the adjudication of concessions for highways and airports in the country. With the new rule, which is expected to be signed in the next few days, the government and financially-stressed companies will be able to find a friendly solution to ventures in these areas.

Previously, the government would declare termination of the concession agreement if the company had financial issues. This resulted in lengthy lawsuits and interruption of services to the population.

With the enactment of Law No. 13,448/2017, the Brazilian government opened the possibility of rebidding these contracts in order to keep the concession running as disputes were resolved. The upcoming decree will regulate the law, therefore allowing it to enter into force in practice.

Benefits

César Borges, a former Minister of Transport and current president of the Brazilian Association of Motorway Concessionaires (ABCR), believes that regulating this law is important for the infrastructure sector and for the entire population.

"It [the law] provides for the possibility of rebidding on stretches amicably returned by the concessionaire to the federal government," he explained, in an interview with Portal Planalto. "It will keep services running and allow the government to renegotiate [the concession], bringing a new concessionaire to continue investing in and operating the motorway without harm to users," he summarised.