Caminhos do Parana Toll Road

active

In 1997, Caminhos do Parana SA was awarded a concession contract by the State of Parana. The bidding process was competitive and the award criteria was the quantity of km of access highways to be rehabilitated by the sponsors. The company was responsible for the rehabilitation, maintenance and operation of a 305-km toll road. Caminhos do Parana was controlled by a consortium led by Cartellone Construcciones Civiles, who was holding 30% of the project company shares; America Empreendimento (18%), Welbers Insua and Codi S.A. (10% each); the remaining shares were held by several sponsors. The initial estimated investment in the concession was US$300 million over the concession period. Caminhos do Parana invested US$40 million in the first year of the concession. In June 1998, as the initial rehabilitation works were completed, the concessionaire started charging tolls. As of August 1998, the concession contract was under renegotiation; as the state government decided to reduce the toll rates, the concessionaire stopped its investment plans and only the rehabilitation works were implemented. As of December 2003, Codi do Brasil Ltda (Codi S.A.) had increased its stake in Caminhos do Parana to 20% of the shares and Welbers Insua had sold its shares. The other main shareholders kept their original stakes: Cartellone Construcciones Civiles, who was holding 30% of the shares and America Empreendimento with 18% of the shares. In 2003, after the concessionaries that operate in State of Parana failed to reach an agreement with the government to lower the toll rates, the government enacted a statute to cancel the concessions and return the management and operation of the highways to the State. However, in December 2003, Caminhos do Parana agreed to reduce 30% of toll rates. According to the agreement between Caminhos do Parana and the government, the company would not be obliged to perform any construction work provisioned in the concession contract under the new toll rate. In January 2004, the governor of the State of Parana enacted an executive decree declaring that the State was authorized to take the voting shares of all the concessionaires of the Anel de Integracao, except Caminhos do Parana. As of December 2005, the concessionaire was still operating the toll-road, but the State of Parana was still pursuing the cancellation of the contract. In February 2012, the government decided to suspend the lawsuit against the company and to resume negotiations on toll rates reduction. http://www.caminhosdoparana.com.br/