RODOVIA PRESIDENTE DUTRA

completed

Summary Of Project Information (SPI)Project NameBRAZIL-Concessionaria da Rodovia Presidente Dutra (“Via Dutra”)     RegionLatin America and CaribbeanSectorProject No007545Projected Board DateSeptember 3, 1996Company NameConcessionaria da Rodovia Presidente Dutra S.A. (“Nova Dutra”)Technical Partner and/or Major Shareholders The Sponsors are Construcoes e Comercio Camargo Correa S.A. (“Camargo Correa”) and Construtora Andrade Gutierrez S.A. (“Andrade Gutierrez”).Project Cost Including proposed IFC investment The estimated total project cost is US$525.5 million. IFC’s proposed investment would include an equity investment of up to US$10.0 million, an A-Loan of US$35 million and B-Loan of US$60 million.     Location of project and Description of site The Via Dutra Highway connects the two largest cities in Brazil, São Paulo and Rio de Janeiro, passes close to several other large cities and connects to several other highways leading to population centers inland and along the coast, including the port of Santos. Via Dutra is considered to be the country''s principal economic corridor linking the country''s two main metropolitan areas, and the industrial centers of the State of Rio de Janeiro (Resenda, Volta Redonda, and Barra Mansa) and the State of São Paulo (São Jose dos Campos, Taubaté, and Jacareí). The Highway also passes through agricultural districts and vegetated mountainous settings in the Serra das Araras region. It is a suburban and intercity highway with two travel lanes along the road and an outside shoulder in each direction near São Paulo and Rio de Janeiro.Description of Company and Purpose of Project In exchange for the right to collect tolls during the life of the concession, Nova Dutra is required to upgrade, restore, expand, maintain and operate the 407 km section of the existing Via Dutra Highway (BR-116/RJ/SP), linking Rio de Janeiro and São Paulo for a 25-year period. Given the newness of Brazil’s road privatization program, IFC’s presence is needed to give comfort to investors and enable participation by commercial banks and other financial institutions. At present, only short-term financing is available for such projects in Brazil. This project, as the largest of the first five Federal highways being privatized, will establish a new standard for highway services in Brazil, and will be a model for later privatizations. The reconstruction and upgrading of the Highway will provide a high quality road with modern services compared to the present poor level of service. The higher quality pavement will reduce vehicle operating costs and allow travel at higher operating velocity, thus reducing travel time. Signaling, illumination and road barriers will all increase operating safety as will the redesigned road accesses. Accidents should decrease significantly from last year’s 14,000. Additional lanes near Rio and São Paulo will increase vehicle capacity and reduce congestion. New overpasses will allow vehicles and pedestrians safe crossing of the Highway. Additional services to motorists will include emergency call boxes located at one-kilometer intervals. A series of medical first-aid stations, with ambulance service, will be spread at approximately 70-kilometer intervals. Emergency service vehicles will also be made available for towing disabled vehicles to the nearest service area. The Project will employ 3000 people during the Initial Works and around 2,300 during the remainder of the project.Environmental Category and Issues This is an environmental review category B project; principal issues are air emissions, liquid effluents, solid waste, emergency response, resettlement, and employee and public safety. The sponsor has presented plans to address these issues and to comply with applicable governmental and World Bank requirements; key actions include measures for air pollution control and wastewater treatment, employee training, and provisions for spill prevention, traffic safety and emergency response. The sponsor is working with the local collectives and governmental authorities to ensure that the relocation of about 200 families located in the project right-of-way is handled in a fair and equitable manner.The is available from the Public Information Center.Date SPI sent to PIC      August 2, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).