PR-323 Toll Road

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In April 2014, Consorcio Rota 323, a partnership of the Brazilian companies Odebrecht Transport (70%), Tucumann Engenharia (10%), Goetze Lobato Engenharia (10%) and America Empreendimentos (10%), won in a competitive bidding the right to expand, rehabilitate and operate the 220 km of the highway PR-323 connecting Maringa - Paisandu and Paysandy - Francisco Alves (state of Parana). The bidding criteria was the lowest tariff, and Consorcio Rota 323 offered toll rates that were 7.1% below the ceiling set by the state government. The names of the other bidders were not available. The 30-year concession contract was signed in June 2014. The sponsors created the company Rota das Fronteiras to lead the project, and operations commenced in September 2014. The investment was estimated at US$ 1531.5 million (BRL 3.6 billion) over the life of the project. The PPP project envisaged the payment of US$ million (BRL 95 million) per year to the concessionaire in addition to the revenues raised by collecting tolls from users. 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.