Rodoanel: Justice suspends auction of northern section – 03/13/2023 – Market

The Court of Justice of São Paulo suspended this Monday (13) the auction of the northern section of the Rodoanel, scheduled to take place at 2 pm this Tuesday. The government may still try to reverse the decision.

The court heard the lawsuit filed by Usuvias (Brazilian Association of Users of Highways under Concession) against Artesp (Transport Agency of the State of São Paulo). The entity claims that there were irregularities and illegalities that prevent the auction from taking place.

In the process, the association claims that there was no public hearing and consultation before the opening of the event, which is provided for in state and federal laws, and that there was an unjustified increase in the kilometric rate, between 96% and 122%.

Judge Simone Gomes Rodrigues Casoretti, from the 9th Public Treasury Court of São Paulo, considered, in the decision, that from the first concession model to the current one there was an increase in the forecast of the toll value without a valid justification.

The suspension of the auction comes after a similar attempt by the developer Coesa (formerly OAS), on the last 10th – the request was denied by the Justice.

The auction for the northern section of the Rodoanel was scheduled by the previous government of Rodrigo Garcia (PSDB) for April 2022, but was suspended one day before the scheduled date.

According to the government at the time, the decision was due to “uncertainties generated by the internal and external macroeconomic scenario and high input prices, responsible for the highest inflation in civil construction in the last two decades in Brazil”.

To increase interest in the project and avoid further suspension of the auction, the government increased the rate of return offered to investors from 8.93% to 9.99%.

The auction model foresees that the winner will be the one that offers the biggest discount on the annual payments to be paid by the government, of R$ 51.4 million per year.

The construction of the northern section of the Rodoanel began in 2013 and has been paralyzed since 2018. The work was initially budgeted at BRL 4.3 billion, but by 2019 it had already consumed around BRL 6.85 billion and was the subject of an investigation by suspicions of overbilling and corruption.

The concession term for the northern section of the Rodoanel will be 31 years, with an estimated investment value of approximately R$ 3.4 billion, according to the notice published in August last year.

Of this amount, approximately R$ 2 billion should be allocated to the completion of the works, with the remainder used in the operation and maintenance of the highway, under the supervision of Artesp (Transport Agency of the State of São Paulo).