Bebedouro - Barretos Toll Road

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The project includes the expansion and rehabiliation of 156 km of roads. The project company ownership was divided as follows: Empa, Construtora Brasil and Torc hold 28.5% of the shares each; and Banco BMG holds 14.5%. The bidding process was competitive and the award criteria was the highest cannon fee to be paid to the government. There was no provision for contract renewal (assets will be returned to the state government). The total project cost has been estimated at US$ 74.3 million: US$ 68 million as infrastructure investment and US$ 6.3 million as lease fee to be paid in monthly installments during the concession period (in order to calculate the real value of the lease fee, a discount rate of 12.68% was used; this government has used this rate in other infrastructure sectors). The toll road started its operation in 1998 and the toll rates are already being charged. The average daily traffic flow is estimated at 8,000 vehicles per day, and it is expected that this number will double during the concession period. In March 2000, the state-owned bank BNDES approved a US$ 7.9 million loan to Tebe. As of December 2003, Banco BMG had sold its stake in Tebe. The remaining three shareholders increased their stakes to 33.33% of the shares each. As of July 2004, Tebe's total investments were US$ 40.2 million (R$ 120.7 million).