In NY, Brazil pitches highway investment opportunities to 15 other nations

The Brazilian Government sent a delegation coordinated by the Transport Ministry to New York (USA) this week to pitch Brazil as one of the best destinations worldwide for infrastructure investment. Brazilian officials showcased those opportunities to financial and infrastructure executives from 15 countries, all with offices in that city. On Wednesday (15), more than 100 executives got to know the details of the federal highway concessions program, which follows a modernized model, with legally secure contracts, socio-environmental protection and highway assets averaging 500 kilometers in extension and aimed at transporting national production.

“We have 13 highway concessions coming up for auction this year, in states such as Minas Gerais, Rio de Janeiro, Mato Grosso, Goiás, Rondônia and Paraná, which will bring investments of BRL 122 billion (USD 23.3 billion). We have a highly diversified portfolio, but with one common characteristic: ensuring the flow of production throughout the country and to other destinations worldwide," explained Transport Ministry Executive Secretary George Santoro, who led the delegation.

He highlighted that roadshow participants with whom the team met bilaterally throughout the week welcomed the Brazilian pitch – an agenda that even the US Embassy in Brazil helped build. "Our production has been growing in recent years and needs logistical improvements, and that draws attention from foreign investors, who see the added value in this food chain. Attracting foreign investment is important for this country because it reduces our budget burden and improves infrastructure, simplifying and reducing costs for our producers," added Santoro.

According to the National Secretary for Road Transport Viviane Esse, drawing international attention to Brazil’s federal highways can increase transportation competitiveness and lower costs for users. "We have been attracting more foreign investors to the auctions we have organized. This includes groups that have never operated in Brazil and others that have, but moved away at some point and are now turning their eyes back to our country. This brings more competition and lower prices for users," she said.

In their presentations, the secretaries emphasized the provisions of the new federal highway concession contracts that increase legal protections, risk mitigation and sustainability. They also presented the tax incentives available to Brazilian and foreign investors, such as the Infrastructure Debenture Law and the currency hedge federal program, which protects investors from currency fluctuations, for example.

Event overview

• Guests: 100 executives from construction, finance and investment companies

• Participating countries: Argentina, Chile, Colombia, Ecuador, France, Germany, Italy, Japan, Mexico, Panama, Peru, Spain, United Kingdom, Uruguay and United States

• Road auctions in 2024: 13 will be held in total, totaling BRL122 billion (USD 23.3 billion) in planned investments

• Average length of highway networks to be granted: 500 kilometers

• Area of operation: Minas Gerais, Rio de Janeiro, Mato Grosso, Goiás, Rondônia and Paraná

• Brazilian bodies represented: Ministry of Transport, National Land Transport Agency, Infra S/A, National Development Bank, Federal Court of Auditors, Apex Brazil

Check out details of all the auctions planned for this year here.

Government agenda

Relying on partners that are capable of applying best international practices to the modernization of Brazil's highway network – one of the longest in the world – has become even more urgent in the face of the challenge of adapting the national infrastructure to extreme weather events, such as those faced by Rio Grande do Sul.

"It's important that we attract private investment so that, in addition to public investment, we have support from foreign capital," said Viviane Esse. "No government in the world will strengthen its infrastructure resilience in the face of increasingly intense extreme events alone. We need the participation of the private sector, of partners capable of contributing with the best and most modern international practices," added George Santoro.

Felipe Queiroz, director of the National Land Transport Agency (Agência Nacional de Transportes Terrestres - ANTT), highlighted the institutional nature of the New York roadshow. "The fact that we are at this event in alignment with BNDE, TCU and all the other institutions in the transport sector that structure, model, approve and manage infrastructure projects is very important for us to show international investors the quality of our projects, the advances in regulation and the legal certainty that exists in Brazil for them to make long-term investments," he stated.

"We have a long-standing partnership with the Ministry of Transportation, in terms of structuring projects and financing, and we are here in the delegation to try to attract projects and financing, and to bring investors to Brazil. BNDES is here to bring financial security to investors and to show that projects will be analyzed, and that there will be financial support from the capital markets, if necessary," said the BNDES' infrastructure superintendent, Felipe Borin.

The federal government delegation will remain in New York until Friday (17), continuing with the agenda of bilateral meetings with big names of the international market, such as Allianz Global Investors, Morgan Stanley Infrastructure Partners and Goldman Sachs.

From: Ministry of Transportation