Sao Paulo, Brazil, April 27 2017— After
strong competition from national and international bidders, the State Government
of Sao Paulo on Tuesday announced Arteris S/A Group as the winner of the
“Road of the Shoes Industry” concession. Arteris is a consortium comprising
Abertis, the world’s biggest road operator, and Canadian investment fund
IFC, a member of the World Bank Group, advised Sao Paulo State’s Transportation
Regulatory Agency – ARTESP – on structuring and tendering the concession,
which is the second of four brownfield roads to be concessioned with IFC’s
support, totaling 1,730kms of state highways.
For the State of Sao Paulo, which is the largest economic and industrial
state in Brazil, the 720km Road of the Shoes Industry highway is a critical
transport artery connecting the state’s footwear manufacturing industry
with national and international markets. IFC is using its global experience
in concessions and infrastructure to bring best international practices
and help make this an internationally competitive and transparent process.
“Sao Paulo is innovating and leading the way in Brazil’s infrastructure
development,” said Hector Gomez Ang, IFC’s Country Head in Brazil.
”Through a transparent, well-structured and competitive process that IFC
supported, the State has been able to attract investors to Brazil, even
though the country is in a difficult economic situation, and this PPP will
bring much needed investment.”
As part of their bid, Arteris will invest nearly $1.7 billion in the Road
of the Shoe Industry. The consortium also offered an upfront concession
fee of about $500 million, which will provide revenue to the state budget,
which can be used for other priority investments in Sao Paulo’s health,
education, or transport sectors.
The previous road also successfully concessioned, the 570km Sao Paulo Mid-West
highway, which IFC also helped structure and tender, was awarded in March
2017 to Patria Investimentos, which is 40% owned by global investment fund
Blackstone, marking the first time an investment fund placed a stand-alone
bid for a road concession in Brazil.
Patria Investimentos offered a concession fee of nearly $400 million and
will invest about $1.3 billion over 30 years.
“These results, which are already setting new benchmarks in terms of concession
fees and international participation, show that well-structured and competitively
tendered infrastructure projects can not only attract global interest in
Brazilian infrastructure, but can also secure new sources of financing
for the country,” said Gomez Ang.
Over the next few days, the Special Bidding Commission will assess the
Arteris bid guarantee, as well as other documents required of the bidder.
The concession contract is expected to be signed before the end of June
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org