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In April Alone, Infrastructure Auctions Reached R$ 27.3 Million in 28 Airport, Railway, Highway, and Other Projects
According to a survey by CNN Brasil Business, in the year 2021 alone, more than R$ 100 billion in investments could be generated through infrastructure auctions. The study considered the auctions that have already been held and those with advanced tenders scheduled for this year, based on the main federal and state auctions of airports, ports, railways, highways, and others that have been completed or are still planned for this year. See also: Infrastructure Could Yield About R$ 40.4 Billion to the Brazilian GDP with Projected Investments Until 2022
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Infrastructure Auctions – Airports, Railways, Highways Auctioned in April
The infrastructure auctions were conducted by the Federal Government on April 7 and 9, dubbed “Infra Week” (the name given to the series of auctions), during which 28 public projects (railways, airports, highways, and ports) were transferred to private management at once.
Included in the infrastructure auctions was a stretch of the Fiol – West-East Integration Railway, the construction of which has been dragging on since 2011 and is expected to transport iron ore from the interior of Bahia to the port of Ilhéus; five port terminals in the Ports of Itaqui (MA) and Pelotas (RS), and lastly 22 airports, including those of Curitiba, Manaus, São Luís, and Boa Vista.
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At the end of April, the Federal Government also granted 850.7 kilometers between Tocantins and Goiás of the BR 153, 080, and 414 highways. The duplication of lanes, additional lanes, marginal roads, lighting, and pedestrian walkways in urban areas are among the projects required from Ecorodovias and GLP, with R$ 14 billion in investments projected in the lot’s tender, one of the highest amounts among this year’s projects.
Upcoming Auctions to Be Held This Year
The infrastructure auctions held in April featured R$ 27.3 billion in future investments. The remaining R$ 74.2 billion from the total account of R$ 101 billion will come from the five highways the Federal Government already has on the agenda to be granted in the second half of this year, according to information from the Ministry of Infrastructure.
Among the highways to be auctioned in the infrastructure sector are the 402 kilometers of the Presidente Dutra Highway (BR 116), which connects the state of São Paulo to Rio de Janeiro. The Dutra was the first highway in the country granted to private initiative in 1996 and has been under the management of NovaDutra, a CCR consortium, since then. After the 25-year projected lifespan, the contract will expire this year and will be put back on the market in the next series of auctions.
The Minister of Infrastructure, Tarcísio de Freitas, has stated several times that the plan is to transfer to the private sector a total of 50 assets this year valued at R$ 130 billion in investments, considering only federal projects.
See Also: Government Says Infrastructure Works and Projects Should Receive Investments of R$ 260 Billion and About 1 Million Jobs Should Be Generated
On April 28, during the inauguration of the Port Avenue in Rio de Janeiro, the Minister of Infrastructure, Tarcísio Gomes de Freitas, stated that the Federal Government expects R$ 260 billion to be invested in infrastructure works and projects by the end of next year. According to the Minister, there is an estimate of creating more than 1 million jobs with concessions to private initiative.
The Minister of Infrastructure emphasized that the potential investment of R$ 260 billion in infrastructure works and projects will be allocated to the transfer of assets to private initiative, which, according to the Minister, will lead to greater economic repercussions in the future. Tarcísio also stated that the job creation will be significant with the investments to be made in government infrastructure works and projects. He also highlights that, with the execution of the works and projects, around 1 million jobs could be generated, both directly and indirectly.
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