Worldwide trends in private participation in roads: Growing activity, growing government support (PPIAF 2008)

Private participation in roads revived strongly in developing countries in 2005–06. The activity was concentrated in greenfield projects and in Asia and Latin America. The main reason for the revival has been the willingness of governments to provide support needed to attract the private sector. Nevertheless, governments need to be aware of the potential risks of such support. And because of the monopolistic features of road projects, they also need to ensure good governance so that the public reaps the full benefits of the private sector’s involvement.

Private Participation in the Road Sector in Brazil: Recent Evolution and Next Steps - Adrien Veron and Jacques Cellier, March 2010

Most of the main roads in Brazil would then be operated as private concessions which, in turn, lead to good road performance, something vital to the economy. This paper aims at contributing to the ensuing policy discussion this situation would generate. It presents a limited evaluation of the experience to date under the federal road network concession program, which represents about a third of the Brazilian tolled network.

Performance Based Contracts in the Road Sector: Towards Improved Efficiency in the Management of Maintenance and Rehabilitation, Brazil's Experience

The concept proved attractive and, as a result, spread progressively in the country, often with Bank support: by late 2008, more than 150 performance based contracts had been executed and close to 30,000 km, or 16 percent of the Federal and State cumulated paved networks, were managed under performance based contracts.