|
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 lender.
“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
.
About IFC
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
.
About BNDES
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
.
|
