The Brazilian Government has issued Provisional Measure No. 752/2016 (“MP 752”) to regulate the renewal and the re-auctioning of concessions qualified for such purposes in the Investment Partnership Programme – PPI, including some concessions of highways, airports and railways.

The MP 752 regulates specific topics related to concessions: concession renewal; early concession renewal (in exchange for new investments) and the re-auction of existing concessions (early termination of the concession agreement, by mutual agreement between the Parties, and execution of a new agreement through a new bidding process).

The MP 752 opens a window of opportunity for investors and companies involved in the aforementioned sectors, taking into account:

i. new rules regulating concessions renewal, which benefits concessionaires that intend to maintain their concession agreements for an additional period;

ii. concessionaires which have financial problems or those who are facing difficulties in the execution of an agreement may proceed with an early termination by mutual agreement; and

iii. existing concessions which are terminated early can be relaunched, thereby broadening the opportunities for new players;

The table below synthesizes the main aspects of the new regulation regarding the concession of highways, airports and railways. 

Please click here to view table.