Cotia - Sorocaba Toll Road

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The project includes the rehabilitation and expansion of the 162 Km highway. The project company is fully-owned by the SAB Castello Raposo Consortium, whose shareholdings are distributed among the following construction companies: Queiroz Galvao (23.8%), Cowan (23.8%), EIT (23.8%), Christiani-Nielsen (23.8%), and Camargo Campos (5%). The bidding process was competitive and the award criteria was the highest cannon fee to be paid to the government. There is no provision for contract renewal (assets will be returned to the state government). The total cost of the project is estimated at US$ 782.8 million: US$ 585 million in investments and US$ 197.8 million in lease fee to be paid in monthly instalments during the life of the concession (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 sponsors will additionally pay US$ 41.9 million in taxes. The project has been financed with a loan from the IADB amounting US$ 130 million, the sponsors' equity, commercial paper issues (Banco Real) and direct loans from commercial banks. In October 1999, the state-owned bank BNDES approved a US$ 82 million loan to the project. As of December 2003, EIT had reduced its stake to 13.88% of the shares of the company, and Queiroz Galvao, Cowan and Christiani-Nielsen increased their shares to 27.11%. In March 2005, Companhia de Concessões Rodoviárias (CCR) bought the project company ViaOeste. CCR is owned by: Construtora Andrade Gutierrez 17.9%, Serveng Civilsan S.A 17.9%, and Construcoes e Comercio Camargo Correa 17.9% which are all Brazilian. Brisa Autoestradas de Portugal SA 17.9% is the only non-Brazilian (Portuguese) shareholder of CCR. In 2006, CCR negotiated with Sao Paulo state to extend its 20-year concession agreement by 57 months. The investments undertaken by Viaoeste, year by year were: 1998 – US$ 46.9 million (R$ 56.6 million) 1999 – US$ 56.4 million (R$ 102 million) 2000 – US$ 103.1 million (R$ 201 million) 2001 - US$ 50.1 million (R$ 111.6 million ) 2002 – US$ 8.3 million (R$ 29.5 million) 2003 - US$ 25 million (R$ 75 million)