Private Participation in the Road Sector in Brazil : Recent Evolution and Next Steps

Today, Brazil has the second longest highway network under private concessions in the world. This paper analyzes Brazil's experience under the two first phases of the federal road concession program, and highlights some of the program's strengths and areas for further development. Despite the unfolding world financial and economic crisis, the potential for further private participation in the sector appears very good. This paper essentially argues that it may be time for Brazil to revamp its current models for private participation in the sector, which may soon reach their limit in terms of being able to meet efficiently the needs of a growing economy. In summary, Brazil could: 1) diversify its toll road model to allow for more innovative public-private partnership structures; 2) update its toll regulatory and contractual framework to overcome some of the design problems that have led to relatively inefficient tolling; 3) consolidate the institutional framework for road concessions to give a stabilized basis for further developments; 4) develop a policy framework adapted to the current Brazilian environment, taking into account the need to ensure harmonized levels of service and tolls across the country; and 5) adapt the sector financing framework to the rising capacity of private markets.

Bibliographic Details

Main Authors:	Véron, Adrien, Cellier, Jacques
Language:	English en_US
Published:	World Bank, Washington, DC 2010-03
Subjects:	ACCELERATION, ACCESS TO INFORMATION, ACCIDENTS, ALLOCATION OF RISK, ALTERNATIVE ROUTE, ASSET CONDITION, AUCTION, AUCTIONS, AUTOMOBILE, AVERAGE TARIFFS, AVERAGE TRAFFIC SPEEDS, AVERAGE TRAVEL SPEEDS, AXLES, BIDDING PROCESS, BOOK VALUE, BOTTLENECK, BRIDGE, BUDGET CONSTRAINTS, BUSES, CAPITAL COSTS, CAPITAL INVESTMENT, CAPITAL INVESTMENTS, CAPITAL MARKETS, CAPITAL WORKS, CAR, CARRIAGEWAY, CARS, COLLECTION SYSTEMS, COMPETITIVE BIDDING, COMPETITIVE BIDDING PROCESS, CONCESSION CONTRACT, CONCESSION CONTRACTS, CONCESSION FRAMEWORK, CONCESSION MODEL, CONCESSIONAIRES, CONCESSIONS, CONGESTION, CONSTRUCTION, CONTRACT AWARD, CONTRACT DESIGN, CONTRACTUAL ARRANGEMENTS, CONTRACTUAL OBLIGATIONS, COST OF CAPITAL, COST OF ROAD USE, COST OF TRANSPORT, COST RECOVERY, COSTS OF ROAD USE, COSTS OF TRANSPORT, COUNTRY RISK, DAILY TRIPS, DEMAND FOR TRANSPORT, DISCOUNT RATE, DRIVERS, DUAL CARRIAGEWAYS, DUE DILIGENCE, DUE DILIGENCE PROCESS, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EXPENDITURES, EXPRESSWAY NETWORK, EXPROPRIATION, FINANCIAL EQUILIBRIUM, FINANCIAL PERFORMANCE, FINANCIAL RESPONSIBILITY, FINANCIAL RETURNS, FINANCIAL RISK, FINANCIAL RISKS, FINANCIAL VIABILITY, FIXED COSTS, FOOTBRIDGES, FOREIGN FIRMS, FUEL, FUEL PRICES, FUTURE CONCESSIONS, GENERATION, GLOBALIZATION, GOVERNMENT PAYMENTS, HEAVY VEHICLE, HEAVY VEHICLES, HIGHWAY, HIGHWAY CAPACITY, HIGHWAY NETWORK, HIGHWAY NETWORKS, HIGHWAY PROGRAM, HIGHWAYS, INCOME, INFRASTRUCTURE INVESTMENTS, INITIAL PRICES, INTERNAL RATE OF RETURN, INTERNATIONAL BANK, INTERNATIONAL COMPETITIVENESS, INTERURBAN ROAD, INVESTMENT COSTS, INVESTMENT GRADE, INVESTMENT OBLIGATIONS, INVESTMENT PROGRAM, INVESTMENT REQUIREMENTS, LAND ACQUISITION, LAND TRANSPORT, LANES, LOGISTICS COSTS, LONG DISTANCE, LONG DISTANCE TRAFFIC, LONG-DISTANCE, LOW TARIFFS, MAIN ROAD, MAIN ROADS, MAINTENANCE COSTS, MARGINAL COSTS, MINIMUM REVENUE GUARANTEE, MINISTRY OF TRANSPORT, MOTORWAYS, NATIONAL INFRASTRUCTURE, NATIONAL TRANSPORT, ORIGINAL CONTRACT, PASSENGER, PASSENGER CARS, PASSENGERS, PAVEMENT, PAVEMENT STRUCTURE, PAVEMENTS, PAYMENT OBLIGATIONS, PERFORMANCE INDICATORS, PERFORMANCE TARGETS, PORTFOLIO, POTHOLES, POWER, PRESENT VALUE, PRIVATE CAPITAL, PRIVATE FINANCING, PRIVATE INVESTMENTS, PRIVATE OPERATORS, PUBLIC PARTICIPATION, PUBLIC PRIVATE PARTNERSHIPS, PUBLIC SECTOR, PUBLIC SECTOR PARTICIPATION, PUBLIC SPENDING, PUBLIC WORKS, RATE OF RETURN, RATE STRUCTURE, REGULATORY GOVERNANCE, RENEGOTIATION, RISK ALLOCATION, ROAD, ROAD CAPACITY, ROAD CONCESSION, ROAD CONCESSIONS, ROAD CONDITIONS, ROAD DEVELOPMENT, ROAD INFRASTRUCTURE, ROAD INVESTMENTS, ROAD MAINTENANCE, ROAD NETWORK, ROAD PROJECTS, ROAD QUALITY, ROAD REHABILITATION, ROAD SAFETY, ROAD SECTOR, ROAD SERVICES, ROAD SURFACE, ROAD TRANSPORT, ROAD USER, ROAD USERS, ROADS, ROADWAY, ROUGHNESS, ROUTE, ROUTES, SECONDARY MARKET, SERVICE LEVELS, SHADOW TOLLS, SHARE OF REVENUES, SHARING, SPEED, STOCK EXCHANGE, STOCK EXCHANGE LISTING, STREETS, STRUCTURES, TARIFF REVISIONS, TARIFF STRUCTURE, TEMPERATURE, TENDER PROCESS, THROUGH TRAFFIC, TOLL, TOLL COLLECTION, TOLL ESCALATION, TOLL PLAZA, TOLL PLAZAS, TOLL RATE FOR CARS, TOLL RATES, TOLL REVENUES, TOLL ROAD, TOLL ROAD CONCESSIONS, TOLL ROADS, TOLL STRUCTURE, TOLL SYSTEM, TOLLS, TRAFFIC, TRAFFIC DEMAND, TRAFFIC FORECASTS, TRAFFIC GROWTH, TRAFFIC LEVEL, TRAFFIC LEVELS, TRAFFIC RISK, TRAFFIC SAFETY, TRAFFIC VOLUME, TRAFFIC VOLUMES, TRAFFIC ­LEVELS, TRANSIT, TRANSPARENCY, TRANSPORT, TRANSPORT COSTS, TRANSPORT DEMAND, TRANSPORT INFRASTRUCTURE, TRANSPORT INVESTMENTS, TRANSPORT MODE, TRANSPORT PLANNING, TRANSPORT POLICIES, TRANSPORT REGULATION, TRANSPORT SECTOR, TRUCKS, TRUE, TUNNELS, UNDERPINNING, URBAN SPRAWL, URBAN TRAFFIC, USER TARIFF, UTILITIES, UTILITY REGULATION, VEHICLE CATEGORY, VEHICLE TYPES, VIADUCTS, VOLUME OF TRAFFIC,
Online Access:	http://documents.worldbank.org/curated/en/2010/03/12840727/private-participation-road-sector-brazil-recent-evolution-next-steps https://hdl.handle.net/10986/17453
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