Brazilian toll road operator Invepar SA on Friday won the rights to upgrade and operate a stretch of a highway linking the country's capital Brasilia to the port of Rio de Janeiro. This has been Brazil's most fiercely contested road auction this year.
According to a report by Reuters, the highway auctioned is a 937-kilometer stretch of Brazil's BR-040 highway. It is located between the federal district of Brasilia and Juiz de Fora, on the border of Minas Gerais and Rio de Janeiro states.
Invepar is expected to invest BRL7.4 billion ($3.2 billion) in BR-040 over the next 30 years, the report said.
The toll road operator won the auction by offering to charge 61% less than the maximum toll allowed by Brazil's government. Invepar is controlled by state-run pension funds Petros and Funcef, industrial conglomerate OAS and an investment fund run by state-controlled lender Banco de Brasil SA, Reuters said.
With the discount, Invepar beat seven other groups angling for Brazil's fifth highway concession in 2013, the report said.
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