Jau Toll Road

active

Centrovias was granted a concession contract that includes the expansion of an existing road and rehabilitation/construction of 52 bridges and 5 toll booths. Centrovias' ownership was initially divided as follows: Construbase and Pem Engenharia holding 20% each; Better holding 18%; Benito Roggio holding 15%; Engeform holding 14%; and Passarelli holding 7%. The bidding process was competitive and the award criteria was the highest cannon fee to be paid to the government. There was no provision for contract renewal (assets will be returned to the state government). The total project cost has been estimated at US$ 652.1 million: US$ 574 million as infrastructure investment and operational expenses, and US$ 78.1 million as lease fee to be paid in monthly installments during the concession period (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 also pay US$ 255 million in taxes. The toll road started its operation in 1998 and the toll rates are already being charged. The state-owned bank BNDES approved a US$ 51 million loan to the project in August 2000. In 2002, the total capital (100%) of Centrovias was acquired by Grupo OHL (Obrascon Huarte Laín). In 2006, OHL negotiated with Sao Paulo state to extend its 20-year concession agreement by 12 months. For the 2005-2006 period, Centrovias planned on investing R$85.9 million.