Sao Paulo, Brazil, October 13, 2009—With
assistance from IFC, a member of the World Bank Group, and the Brazilian
Development Bank (BNDES), the government of Brazil has signed a 25-year
concession agreement with the Rodobahia Consortium to upgrade and expand
nearly 700 kilometers of federal roads in the State of Bahia.
The improved highways will help build
the region’s economic resilience and foster broader development by providing
reliable access to markets, hospitals, schools, and other services.
The winning bidder will invest up to
$615 million to improve two key federal routes—BR116, a main north-south
corridor that links to the country’s interior, and BR324, which connects
Brazil’s third-largest city, Salvador, and the Port of Aratu with BR116.
The Rodobahia Consortium is a partnership of Spain’s Isolux Corsan and
Brazil’s Engevix and Encalso.
IFC and BNDES served as lead advisors
to the Brazilian Ministry of Planning and the National Transport Agency
for the transaction. BNDES will continue to participate as a senior
“Working together, IFC and BNDES succeeded
in bringing private sector participation into these critical infrastructure
projects,” said Henrique Pinto, Superintendent of BNDES’ Project Advisory
department. “This was a formidable challenge, particularly in the
current environment. Modern, well-maintained roads are a key to Brazil’s
sustained economic growth.”
“Reliable roads are the backbone of
development, so private sector engagement in infrastructure is critical,”
said Andrew Gunther, IFC Country Manager, Brazil. “This project will strengthen
the links between the north and south, creating more jobs and economic
opportunities. We are delighted that this collaboration between IFC
and BNDES attracted such strong private investment.”
Established in 1989, IFC Advisory Services
in Infrastructure has worked on more than 250 projects in 80 countries.
IFC is the only multilateral institution to offer direct advisory services
to governments on implementing transactions with private sector participation.
For more information, visit www.ifc.org/infrastructureadvisory.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by
supporting private sector development, mobilizing private capital, and
providing advisory and risk mitigation services to businesses and governments.
Our new investments totaled $14.5 billion in fiscal 2009, helping
channel capital into developing countries during the financial crisis.
For more information, visit www.ifc.org.
The Brazilian Development Bank, or BNDES,
is a federal public company, linked to the Ministry of Development, Industry,
and Foreign Trade. Its goal is to provide long-term financing aimed at
enhancing Brazil’s development and, therefore, improving the competitiveness
of the Brazilian economy and the standard of living of the Brazilian population.
For more information, visit http://inter.bndes.gov.br/english.