BR-163 MS Toll Road

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In December 2013, the Brazilian company CCR won in a competitive bidding the right to expand, rehabilitate and operate the 847 km of highways BR-163 MS, located in the state of Mato Grosso do Sul. The bidding criteria was the lowest tariff, and CCR offered toll rates that were 57.2% below the ceiling set by the federal government. Four other companies took part in the bidding process: Queiroz Galvao, Odebrecht, Triunfo e Invepar. The 30-year concession contract was signed in March 2014. The sponsors created the company MS VIA – Concessionaria de Rodovia Sul-Matogrossense S. A. to lead the project. Operations commenced in April 2014. The investment was estimated at US$ 2425 million (BRL 5.7 billion) over the life of the project. In July 2014, the state-owned bank BNDES approved a US$ 275.1 million (BRL 646.6 million) loan to 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. In March 2016, BNDES approved an additional US$ 569.8 million (BRL 2.11 billion) to the project.