The Presidency of the Republic's Ports Secretariat (SEP/PR) published on 20/03/2015 the notice of public hearing to obtain contributions on the model of concessions of the fairways of organized ports.

SEP/PR understands that the current model of maintenance and deepening of the access to public ports, set out by the National Docking Plan II (PND II), by the procurement of dredging works, has restrictions, such as: (a) limited number of competitors in the dredging market; (b) low acceptance of the market to long term contracts, for reasons such as: foreign exchange, political and budgetary risks, in addition to the risk of variations in the cost of fuel and the relevance of the revenue associated with mobilization and demobilization; (c) fiscal restrictions for procuring dredging works via the Federal Government's General Budget.

The implication of such restrictions is that SEP/PR has not been able to achieve the desired results in the maintenance and deepening of the fairways to organized ports.

In order to overcome such difficulties, the SEP/PR proposes to alter the currently in effect public work procurement model, starting to offer to the market an exploration concession  model for the access to organized ports, through medium and long term contracts, having the concessionaires right to a remuneration, being incumbent upon them to maintain and/or deepen the fairways.

The proposed model allows several types of companies to participate in the tenders.

The SEP/PR did not detail the content of the invitation to bid and of the concession contracts and wants to obtain opinions from the market with respect to the following aspects:

a) Object: what should be the scope of the concessions;

b) Term: what is the most adequate term for the concessions;

c) Tender criteria: how should the winner of the biding processes be selected;

d) Ownership of the concessionaire: what should be the restrictions or requirements related to the ownership of the concessionaire;

e) Remuneration of the concessionaire: what should be the method of remuneration of the concessionaire;

f) Regulation and inspection: the aspects of contract regulation and inspection and the best way to carry them out;

g) Assets: access of which ports shall be granted under concession.

In the process of consultation, a public presential hearing is scheduled for April 9, 2015, to take place in São Paulo, where the contents of the SEP/PR's proposal will be discussed.

The contributions gathered within the period of consultation will be considered for the final definition of strategic aspects of the model and to structure the preparation of technical and economic viability studies for the concessions.

The process of public consultation will end on 19/04/2015.

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