The Brazilian Government has issued Provisional Measure No. 752/2016 ("MP 752") to regulate the renewal and the re-auctioning of concessions qualified for such purposes in the Investment Partnership Programme – PPI, including some concessions of highways, airports and railways.
The MP 752 regulates specific topics related to concessions: concession renewal; early concession renewal (in exchange for new investments) and the re- auction of existing concessions (early termination of the concession agreement, by mutual agreement between the Parties, and execution of a new agreement through a new bidding process).
The MP 752 opens a window of opportunity for investors and companies involved in the aforementioned sectors, taking into account:
- new rules regulating concessions renewal, which benefits concessionaires that intend to maintain their concession additional period;
- concessionaires which have financial problems or those who are facing difficulties in the execution of an agreement may proceed with an early termination by mutual agreement; and
- existing concessions which are terminated early can be relaunched, thereby broadening the opportunities for new players;
The table below synthesizes the main aspects of the new regulation regarding the concession of highways, airports and railways.
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