Brazil's Bean Route PPP debut awarded
Brazil’s first motorway renovation and maintenance PPP – concession has been awarded to the Estrada do Feijao Bahia consortium (a joint venture between local developers Paviservice and SVC Construcoes. The Inter-American Development Bank, IFC and BNDES all provided technical advisory on the tender.
The winning bidder will invest BRL705 million ($206 million) over the life of the 20-year availability-based concession. Initial investment will be BRL380 million, which will be financed with a BRL300 million loan from Banco do Nordeste and BRL80 million of equity. The debt is backed by annual government availability payments of up to BRL71.1 million and public top-up funding of BRL54 million, which is payable via two instalments – one during the third year and the other during the fourth year of the concession – or via an increase in the availability payments over the life of the concession.
The project, also called the Bean Route, involves the rehabilitation and maintenance of 462km of Estrada do Feijao (BA-052), connecting the cities of Feira de Santana and Xique-Xique, and 85km of the road BA-160, in the stretch between Xique-Xique and the ferry crossing point to the municipality of Barra. It also includes the building of a new bridge over the Sao Francisco River that will connect the municipalities of Barra and Xique-Xique.
