Federal Toll Road Concession Program in Brazil: Is It Moving in the Right Direction?
Publication: Journal of Infrastructure Systems
Volume 20, Issue 2
Abstract
This paper assesses the toll road concession program started by the federal government of Brazil, from its beginning in 1996 until 2012. Brazil has one of the longest road networks, under private concessions, in the entire world. The authors use the case study approach, based on the available information, to analyze the evolution of the program over the course of its history. Specifically, a detailed analysis is conducted from three perspectives: those of the competitiveness of the tender, the impact of toll modifications caused by the rebalancing of the economics of the contract, and the actual evolution of the traffic flows as compared to their estimates, respectively. It is found that the most recent auctions have been very competitive. Moreover, with the original toll roads, bidders relied on early traffic forecasts that turned out to be overly optimistic, and over the years, contract rebalancing has led to large increases in toll rates. Overall, and even though Brazil’s program can be considered successful in many ways, there is still considerable room for improvement.
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Published In
Journal of Infrastructure Systems
Volume 20 • Issue 2 • June 2014
Copyright
© 2014 American Society of Civil Engineers.
History
Received: Feb 20, 2013
Accepted: Nov 12, 2013
Published online: Jan 6, 2014
Published in print: Jun 1, 2014
Discussion open until: Jun 6, 2014
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