Ferrovia Parana S.A.

cancelled

At the end of 1996, Ferrovia Parana S.A.(Ferropar), a consortium of four Brazilian companies and one South African company, acquired a 30-year sub-concession to operate a portion of the railroad system of the State of Parana. A state-owned company, Ferroeste, has a concession to operate railroads in Parana. Ferroeste was established in 1988 by the state of Parana, which holds 92.25% of the shares, to build a railway to serve the agricultural industry in the west of the state. In 1996, Ferroeste and the government of the state of Parana decided to privatize part of the Ferroeste's concession through a public bid. The state government awarded a 30-year sub-concession, regarding a 248 Km railroad between Guarapuava and Cascavel, to Ferropar. Ferropar was a consortium of Geral de Engenharia e Montangens (Gemon), Empreendimentos e Participacoes Ltda (FAO), Banco Interfinance, and Pound S.A. of Brazil, and Comazor of South Africa. Ferropar was expected to pay US$ 23 million (R$25.68 million) for the sub-concession, 5% upfront, and agreed to invest US$ 110 million (R$117.7 million) in the initial five-year period. The railroad between Guarapuava and Cascavel was built between August 1992 and September 1994 by the Brazilian Army. The state-owned company, Ferroeste, plans to continue with construction of the remaining 171 km from Cascavel to Guaira, at an expected cost of US$ 130 million. Ferropar is expected to pay an additional ammount for the sub-concession to operation the new railroad. As of June 1998, Ferroeste was awaiting financing before it could start construction. As of December 2003, Ferropar's shareholders were ALL-Latin America Logistica, Empreendimentos e Participacoes Ltda (FAO), Geral de Engenharia e Montagens (Gemon), and Pound SA, with a 25% stake each. In December 2006, the state-owned company Ferroeste took over the operations of the railway, when Ferropar declared bankruptcy. In February 2006, ALL sold its 25% stake in Ferropar to the remaining partners for US$0.48 million (Real 1.06 million). Modificar Sponsor Info: 3 Sponsors - 33.3% each The investments made by Ferropar year by year were the following: 1997 - US$ 0.082 million (R$ 0.088 million) 1998 - US$ 0.98 million (R$ 1.14 million) 1999 - US$ 3.89 million (R$ 7 million) 2000 - US$ 0.13 million (R$ 0.24 million) 2001 - US$ 0.05 million (R$ 0.12 million) (http://www.pr.gov.br/ferroeste/index.shtml)