Private Participation in the Road Sector in Brazil : Recent Evolution and Next Steps

Private Participation in the Road Sector in Brazil : Recent Evolution and Next Steps

Today, Brazil has the second longest highway network under private concessions in the world. This paper analyzes Brazil's experience under the two first phases of the federal road concession program, and highlights some of the program's s...

Full description

Bibliographic Details
Main Authors:	Véron, Adrien, Cellier, Jacques
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCELERATION ACCESS TO INFORMATION ACCIDENTS ALLOCATION OF RISK ALTERNATIVE ROUTE ASSET CONDITION AUCTION AUCTIONS AUTOMOBILE AVERAGE TARIFFS AVERAGE TRAFFIC SPEEDS AVERAGE TRAVEL SPEEDS AXLES BIDDING PROCESS BOOK VALUE BOTTLENECK BRIDGE BUDGET CONSTRAINTS BUSES CAPITAL COSTS CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKETS CAPITAL WORKS CAR CARRIAGEWAY CARS COLLECTION SYSTEMS COMPETITIVE BIDDING COMPETITIVE BIDDING PROCESS CONCESSION CONTRACT CONCESSION CONTRACTS CONCESSION FRAMEWORK CONCESSION MODEL CONCESSIONAIRES CONCESSIONS CONGESTION CONSTRUCTION CONTRACT AWARD CONTRACT DESIGN CONTRACTUAL ARRANGEMENTS CONTRACTUAL OBLIGATIONS COST OF CAPITAL COST OF ROAD USE COST OF TRANSPORT COST RECOVERY COSTS OF ROAD USE COSTS OF TRANSPORT COUNTRY RISK DAILY TRIPS DEMAND FOR TRANSPORT DISCOUNT RATE DRIVERS DUAL CARRIAGEWAYS DUE DILIGENCE DUE DILIGENCE PROCESS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EXPENDITURES EXPRESSWAY NETWORK EXPROPRIATION FINANCIAL EQUILIBRIUM FINANCIAL PERFORMANCE FINANCIAL RESPONSIBILITY FINANCIAL RETURNS FINANCIAL RISK FINANCIAL RISKS FINANCIAL VIABILITY FIXED COSTS FOOTBRIDGES FOREIGN FIRMS FUEL FUEL PRICES FUTURE CONCESSIONS GENERATION GLOBALIZATION GOVERNMENT PAYMENTS HEAVY VEHICLE HEAVY VEHICLES HIGHWAY HIGHWAY CAPACITY HIGHWAY NETWORK HIGHWAY NETWORKS HIGHWAY PROGRAM HIGHWAYS INCOME INFRASTRUCTURE INVESTMENTS INITIAL PRICES INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL COMPETITIVENESS INTERURBAN ROAD INVESTMENT COSTS INVESTMENT GRADE INVESTMENT OBLIGATIONS INVESTMENT PROGRAM INVESTMENT REQUIREMENTS LAND ACQUISITION LAND TRANSPORT LANES LOGISTICS COSTS LONG DISTANCE LONG DISTANCE TRAFFIC LONG-DISTANCE LOW TARIFFS MAIN ROAD MAIN ROADS MAINTENANCE COSTS MARGINAL COSTS MINIMUM REVENUE GUARANTEE MINISTRY OF TRANSPORT MOTORWAYS NATIONAL INFRASTRUCTURE NATIONAL TRANSPORT ORIGINAL CONTRACT PASSENGER PASSENGER CARS PASSENGERS PAVEMENT PAVEMENT STRUCTURE PAVEMENTS PAYMENT OBLIGATIONS PERFORMANCE INDICATORS PERFORMANCE TARGETS PORTFOLIO POTHOLES POWER PRESENT VALUE PRIVATE CAPITAL PRIVATE FINANCING PRIVATE INVESTMENTS PRIVATE OPERATORS PUBLIC PARTICIPATION PUBLIC PRIVATE PARTNERSHIPS PUBLIC SECTOR PUBLIC SECTOR PARTICIPATION PUBLIC SPENDING PUBLIC WORKS RATE OF RETURN RATE STRUCTURE REGULATORY GOVERNANCE RENEGOTIATION RISK ALLOCATION ROAD ROAD CAPACITY ROAD CONCESSION ROAD CONCESSIONS ROAD CONDITIONS ROAD DEVELOPMENT ROAD INFRASTRUCTURE ROAD INVESTMENTS ROAD MAINTENANCE ROAD NETWORK ROAD PROJECTS ROAD QUALITY ROAD REHABILITATION ROAD SAFETY ROAD SECTOR ROAD SERVICES ROAD SURFACE ROAD TRANSPORT ROAD USER ROAD USERS ROADS ROADWAY ROUGHNESS ROUTE ROUTES SECONDARY MARKET SERVICE LEVELS SHADOW TOLLS SHARE OF REVENUES SHARING SPEED STOCK EXCHANGE STOCK EXCHANGE LISTING STREETS STRUCTURES TARIFF REVISIONS TARIFF STRUCTURE TEMPERATURE TENDER PROCESS THROUGH TRAFFIC TOLL TOLL COLLECTION TOLL ESCALATION TOLL PLAZA TOLL PLAZAS TOLL RATE FOR CARS TOLL RATES TOLL REVENUES TOLL ROAD TOLL ROAD CONCESSIONS TOLL ROADS TOLL STRUCTURE TOLL SYSTEM TOLLS TRAFFIC TRAFFIC DEMAND TRAFFIC FORECASTS TRAFFIC GROWTH TRAFFIC LEVEL TRAFFIC LEVELS TRAFFIC RISK TRAFFIC SAFETY TRAFFIC VOLUME TRAFFIC VOLUMES TRAFFIC LEVELS TRANSIT TRANSPARENCY TRANSPORT TRANSPORT COSTS TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENTS TRANSPORT MODE TRANSPORT PLANNING TRANSPORT POLICIES TRANSPORT REGULATION TRANSPORT SECTOR TRUCKS TRUE TUNNELS UNDERPINNING URBAN SPRAWL URBAN TRAFFIC USER TARIFF UTILITIES UTILITY REGULATION VEHICLE CATEGORY VEHICLE TYPES VIADUCTS VOLUME OF TRAFFIC
Online Access:	http://documents.worldbank.org/curated/en/2010/03/12840727/private-participation-road-sector-brazil-recent-evolution-next-steps http://hdl.handle.net/10986/17453

Description
Summary:	Today, Brazil has the second longest highway network under private concessions in the world. This paper analyzes Brazil's experience under the two first phases of the federal road concession program, and highlights some of the program's strengths and areas for further development. Despite the unfolding world financial and economic crisis, the potential for further private participation in the sector appears very good. This paper essentially argues that it may be time for Brazil to revamp its current models for private participation in the sector, which may soon reach their limit in terms of being able to meet efficiently the needs of a growing economy. In summary, Brazil could: 1) diversify its toll road model to allow for more innovative public-private partnership structures; 2) update its toll regulatory and contractual framework to overcome some of the design problems that have led to relatively inefficient tolling; 3) consolidate the institutional framework for road concessions to give a stabilized basis for further developments; 4) develop a policy framework adapted to the current Brazilian environment, taking into account the need to ensure harmonized levels of service and tolls across the country; and 5) adapt the sector financing framework to the rising capacity of private markets.