Queiroz Galvao Takes Revenue Risk on Sao Paulo Road Concesion

The consortium Consórcio Litoral Norte, led by Brazilian engineering firm Queiroz Galvao (QG), got the highest score in the bidding for Sâo Paulo state’s first hybrid highway concession, Nova Tamoios, by essentially waiving its availability fee. But the Sao Paulo State transportation agency (ARTESP) stopped short of naming a winning bidder because of a court injunction filed by the second place bidder that questioned the economics of QG’s winning bid.
The Reais 3.9-billion (US$1.6 billion), 30-year concession offers tolls and an availability fee to its operator. ARTESP said it would award the concession to the bidder that requires the lowest annual availability fee to build, finance, operate and maintain the highway. Artesp had capped the fee at Reais 156.8 million (US$63.2 million) for the 25-year period.


About Bill Reinhardt

Editor of Public Works Financing newsletter
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