BR 040 - 116 - 381 Toll Road

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In December 2013, Invepar, a partnership of the Brazilian construction company OAS (25%) and three Brazilian pension funds (Banco do Brasil PREVI, Caixa Economica Federal FUNCEFand Petrobras Petros, each with 25% of the shares), won in a competitive bidding the right to expand, rehabilitate and operate the 936.8 km of highway BR-040 connecting the cities of Brasilia and Rio de Janeiro. The bidding criteria was the lowest tariff, and Invepar offered toll rates that were 61.13% below the ceiling set by the federal government. Seven other groups took part in the bidding process: Consórcio Via Capital (Ecorodovias Infraestrutura e Logistica s.a., Coimex Empreedimentos e Participacoes Ltda., Rio Novo Locacoes Ltda; Tervap Pitanga Mineracao e Pavimentacao Ltda; Contek Engenharia S.A.; A. Madeira Industria e Comercio Ltda; Urbesa Administracao Ltda); Companhia de Participacoes em Concessoes (CPC/CCR); TPI – Triunfo Participacoes e Investimentos; Queiroz Galvao Infraestrutura; Consorcio Caminho Novo (Encalso Construcoes Ltda; Camter Construcoes e Empreendimentos S/A; Infravix participacoes S/A; Conter Construcoes e Comercio S/A; Firpavi Construtora e Pavimentadora S/A ); Consorcio Integracao ( Fidens Engenharia S.A.; Construtora Aterpa M. Martins S.A.; Construtora ); and Contern Construções e Comércio Ltda. The 30-year concession contract was signed in March 2014. The sponsors created the company Concessionaria BR-040 S.A. (Via 040) to lead the project. Operations commenced in April 2014. The investment was estimated at US$ 3369 million (BRL 7.92 billion) over the life of the project. In September 2014, the state-owned bank BNDES approved a US$ 410.8 million (BRL 965.7 million) loan finance the investment costs in the first two years of the project. The project was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures.