BR-153 Toll Road

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In Maio 2014, the Brazilian company Galvao Participacoes (Grupo Galvao) won in a competitive bidding the right to expand, rehabilitate and operate the 624.8 km of the highway BR-153 connecting Anapolis/state of Goias (BR-060) and Alianca do Tocantins/State of Tocantins (TO-070). The bidding criteria was the lowest tariff, and Grupo Galvao offered toll rates that were 46% below the ceiling set by the federal government. Two other groups took part in the bidding process: Consorcio Norte-Sul and Triunfo Participacoes. The 30-year concession contract was signed in September 2014. The sponsors created the company Concessionaria de Rodovias Galvao BR 153 SPE S.A. (Galvao Rodovia BR-153) to lead the project. Operations commenced in November 2014. The investment was estimated at US$ 1829.3 million (BRL 4.3 billion) over the life 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.