By Brazil Stock Guide – Brazil’s Investment Partnerships Program Council (CPPI) approved on Wednesday the minimum conditions for the privatization of two key federal highways in Minas Gerais state.
The auction will cover 751 kilometers across stretches of BR-116 and BR-251, with bidding open to international competitors. The concession contract will run for 30 years, extendable for another 30. The winner will be chosen based on the lowest toll tariff offered.
The tariff ceiling in the tender will be set at a level ensuring zero discounted cash flow, adjusted by the regulatory cost of capital.
Roads included in the auction
- BR-116/MG: from the Bahia-Minas Gerais border to the junction with BR-381/451 at Governador Valadares.
- BR-116/MG (Teófilo Otoni bypass): from km 0.030 to km 16.870.
- BR-251/MG: from the junction with BR-116 to the junction with BR-122 at Montes Claros’ urban perimeter.
The government expects strong investor interest, given the strategic role of these highways for freight logistics in Brazil’s Southeast.