Ribeirao Preto Highway System

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The project includes the expansion and rehabiliation of 236 km of roads. The project company, Vianorte, was wholly owned by Consorcio Rodovia Inteligente, whose ownership was divided as follows: Construcap and Aragon were holding 20% of the shares each; Ourinvest holding 18%; Civil Obras holding 15%; Tejofran holding 14%; Multiservice holding 7%; and Somague holding 6%. 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$ 382.9 million: US$ 226 million as infrastructure investment and US$ 156.9 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 toll road started its operation in 1998 and the toll rates are already being charged. As of December 2003, Vianorte was controlled by CCI Concessoes (22.71%), Construcap CCPS Engenharia e Comercio (22.70%), Banco Ourinvest (20.43%), Tejofran (15.89%), Braest Participacoes (12.36%) and Civil Obras (5.91%). In December 2006, Vianorte S.A. was acquired 100% by OHL Brasil (Bovespa: OHLB3) for $95mn USD. The parent company, Obrascon Huarte Lain (OHL), owns 60% of OHL Brazil. The remaining 40% of OHL Brazil is in the hands of Brazilian and international investors.