The Federal Government disclosed on June 09, 2015 the new phase of the Program for Investment in Logistics. The Program, which sets forth the new round of infrastructure concessions, anticipates investments of R$ 198.4 billion in toll-roads, airports, ports and railways. According to the Program, between 2015 and 2018, the anticipated investments are of R$ 69.2 billion. As of 2019, R$ 129.2 billion shall be additionally increased. The planned investments are divided among four sectors: railways (R$ 86.4 billion); toll-roads (R$ 66.1 billion); ports (R$ 37.4 billion) and airports (R$ 8.5 billion).



For the concession of toll-roads, the new round of concessions forecasts a total amount of 16 public auctions between 2015 and 2016, combined with investments in existing concessions. The public auctions shall be evaluated in accordance with the lower-tariff criteria, to be proposed by the private investor, being the first round anticipated to the 4th quarter of 2015.


In the case of railways, which shall receive the greatest part of the investments, the concession model will be adjusted and perfected. The definition of the model will be based in the peculiarities of each project. The government will be able to carry-out public auctions evaluated by the most beneficial granting amount, lower-tariff criteria or the sharing of the investment.


The investments in the port sector include 50 new leases, 63 new Private Use Terminals (TUPs) and 24 renewals of existing leases. The regulation of the Ports Law has been changed to include the possibility of having the highest proposed payment by the bidder as judgment criteria of the proposals presented within the bidding processes of ports and ports facilities.


For the airport sector, the Program encompasses 3 distinct approaches: the first forecasts 4 new federal concessions of airports, including the International Airports of Salvador, Fortaleza, Florianópolis and Porto Alegre, with the public auction anticipated for the 1st quarter of 2016; the second consists in the authorization of the Brazilian Federal Government for the concession of 7 regional airports delegated to other federative agencies; the third includes the restructuring and modernization of Infraero.

Conditions for Financing

In accordance with the proposed plan presented, the Brazilian Federal Government intends to stimulate the participation of private capital, thus decreasing the dependency of the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) for the long term financing of the projects. Although the BNDES will continue to play a relevant role, the participation of private banks and capital markets shall increase.

The Program seeks to enhance the issuance of Project Bonds (debentures de infraestrutura) by the private sector. To achieve this goal, the government links the bonds issuance transactions with an increase in the maximum amount that can be financed by BNDES using the Taxa de Juros de Longo Prazo (TJLP), the interest rate used as reference in the bank's transactions.

For the toll-roads, where initially the financing using the TJLP is limited to 35%, the volume may increase to 45%, in case the concessionaire issues 10% in Project Bonds. For the ports sector, with the issuance of at least 10% of Project Bonds, the financing referenced in the TJLP will increase from 25% to 35%. In relation to airports, the private companies, to gain access to 30% of BNDES financing indexed to the TJLP, must issue at least 15% of Project Bonds. Without the issuance of Project Bonds, the BNDES financing indexed to the TJLP is of 15%. Should the issuance of Project Bonds reach 35%, the participation of BNDES in the financing indexed to the TJLP may reach 35%.

In case of railways, the conditions are different. BNDES may finance up to 70% using the TJLP and the remaining 20% at interest market rates. For such sector, the BNDES financing is not linked to the issuance of Project Bonds.

The strategy aims to increase the equity contribution of the operators of the concessions, increases the opportunities for local and international investors and develops risk mitigation mechanisms for the private investors.

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