Aug 18, 2020

 On Tuesday 18th, the Brazilian Development Bank (BNDES) and the state government of Rio de Janeiro signed contracts for the structuring of two projects: one for the implementation and management of a new electronic ticketing system for inter-municipal public transport in the Metropolitan Region and another concession for 516 km of state highways. The objective is to improve the urban mobility of 850,000passengers per day and the quality of almost 10% of the state's road network. BNDES will be responsible for coordinating modeling studies and supporting the state government. The vice-governor, Cláudio Castro, the director of Infrastructure, Concessions and PPPs of the BNDES, Fábio Abrahão, the secretary of Transport, Delmo Pinho, and the secretary of Economic Development, Marcelo Lopes, attended the signing.

Abrahão highlighted the benefits of the projects in improving urban mobility and attracting investments in the state. “The ticketing project is an important movement and a unique opportunity for the structuring of urban mobility in Rio, both for financial matters, allowing to diagnose how the different modes are used and to redefine tariffs efficiently, and for operational matters, as that can be used for a future intelligent redesign of the lines”. The state highways project, said Abrahão, is a relevant milestone in Rio's road concession, as it has the potential to attract investments of R$ 3 billion in the first five years and foresees the inclusion in the market in the first half of 2022.

The vice-governor stressed the importance of these projects for the population of Rio de Janeiro. “This signature represents an advancement for the state, which had been making no concessions for highways for over 20 years. In addition to improving the structure of the roads, we will generate jobs for the population. Rio de Janeiro has only one direction: towards development,” he said.

Electronic ticketing – The electronic ticketing system project will be the first of its kind in the country. It will expand the integration of a wide range of transport (such as buses, BRT, train, subway, VLT and ferries, in addition to the possibility of including bicycles and cars) by means of a card, which may also include additional applications such as banking functions and access to leisure activities or tourist attractions. This model is already used in important tourist centers such as London, Paris and Seoul. With greater integration of transport, the expectation for users is that travel becomes faster, easier and more flexible.

The superintendent of the BNDES Investment Partnership Structuring Division, Cleverson Aroeira, highlights the benefits of the initiative for a region that has about 105 companies operating more than 16,000bus lines, in addition to companies that operate in other means of transport: "A new electronic ticket management system will provide the state of Rio better control over the process and over passenger traffic information". According to Aroeira, this will allow to rationalize the use of resources and improve policies to integrate public transport modes, providing greater mobility and speed for users.

Currently, the state government transfers approximately R$ 400 million per year to subsidize its single ticket (bilhete único) – which allows for up to two integrations per route. But the number of trips is controlled through sampling. With the new system, it will be possible to have quick access to data from all trips and the number of integrations per user can be increased. The availability of more detailed information will provide more reliability and transparency, which may result in savings for the state. In addition, it will enable adjustments to the system, prioritizing new integrated lines.

This new ticketing model may also allow the adoption of technologies such as facial recognition and digital printing, increasing security regarding the flow of passengers and citizen safety. For Castro, this partnership with BNDES will allow the government of Rio to better plan public policies for this sector. "It is a new step, for a new time and a new society," said vice-governor Cláudio Castro.

Highways – The privatization of the 516 km of highways in the state of Rio comprises sections in the Metropolitan Region (RJs 071, 081 and 103), in the Sul Fluminense (RJs 127, 145 and 155) and in the north coast (RJs 104, 106 and 162). This total will represent an increase of 41% in the state network of concession roads.

The initiative will allow for more fluidity in metropolitan traffic, contributing to cargo handling and reducing logistical costs; it will facilitate access to roads such as Avenida Brasil and Ponte Rio-Niterói, in addition to the Tom Jobim International Airport (Galeão); it will expand the integration of further South Fluminense to Via Dutra and strengthen tourism in the countryside of Rio de Janeiro, with positive effects on local economies. In addition, the privatization of stretches can reduce costs of the state with recovery, restoration and expansion of roads in addition to strengthening cash with the concessions paid by concessionaires.

In 2019, a research with a sample of 2,600 km of highways in Rio de Janeiro and conducted by the National Transport Confederation (CNT) indicated that 90.9% of the granted sections are in excellent or good condition, while only 49.9 % of highways under public management (federal- or state-level) were considered under the same classification.

The highways can be divided into up to five lots and be explored through a public-private partnership (PPP) concession.

Check the map indicating the locations of the highways.

Structuring – The role of BNDES will be to coordinate the studies assessing the economic feasibility of the implementation and management of the concessions. For such, the Bank will hire consultants to conduct necessary analyses and monitor the provision of this service; will establish contact with potential entities interested in managing the service; and will provide support to the state government of Rio de Janeiro until the hiring of the person responsible for implementing the new system after the bidding process. The billing and highway system auctions are expected to take place in 2022.

Privatization – Working at all levels of the Federation, BNDES currently has several projects for structuring that include sectors such as sanitation, public lighting, highways, urban mobility, electricity and port. 

Learn more about the stages of a privatization process at  the BNDES' site.