Topic Area: H2 Paper Number: 8205 Authors: Karisa Ribeiro, Andre Dantas, Koshi Yamamoto Title: The Brazilian Experience in Road Concession: Past, Present and Future Abstract: In recent years, Brazil has passed through a process of transference of public services. Due to limited resources to maintain the level of services, government has been transferring them to private companies. Specifically in transports, the road concession program has been criticized in many aspects. In order to understand crucial issues and evaluate new perspectives for the program, this paper performs a historical and critical analysis. We identified possible reasons for current situation that are mainly related to a restricted planning strategy. Based on this backdrop, two future perspectives for the Brazilian road concession program were developed. Key words: Concession, Road, Infrastructure, Public-Private Partnership Method of Presentation: (1) OHP (X) (2) Slide Projector ( ) (3) LCD Projector ( ) 1 Topic Area Code: H2-8205 The Brazilian Experience in Road Concession: Past, Present and Future Karisa RIBEIRO Civil Engineer, Master Student Andre DANTAS Master in Transportation, Ph.D. Student Koshi YAMAMOTO Professor Dept. of Civil Engineering Nagoya Institute of Technology, 466-8555, Gokiso-cho, Showa-ku, Nagoya, Japan Tel.& Fax. : + 81-52-735-5496 E-mail: karisa@keik1.ace.nitech.ac.jp 2 1. INTRODUCTION In recent years, a worldwide tendency on the establishment of public-private partnerships to promote efficiency and productivity of infrastructure-related services is observed. Due to budgetary restrictions, many countries are considering these partnerships as a form to keep and improve the quality of services supplied to users taking advantage of nongovernmental funds (Krauz, 1996; Barret, 1999). This tendency is more visible in developing countries, since their economy do not present stable conditions to support huge investments as needed in the development of infrastructure (MacDonald, 2000). Among developing countries, Brazil’s case on public-private partnerships can be highlighted due to its continental dimension and acknowledged role as a leading nation in South America. Since 1990, Brazilian government has been developing extensive policies of concession on public services and facilities. Transportation, telecommunication and energy sectors have been transferred to private companies. Especially in transportation, which involves many social, economical and political aspects, the transference of the infrastructure is fundamental since it is responsible for 250 billion dollars or 40% of Gross Domestic Product (GDP) (Magalhaes, 1998). In transportation context, Brazilian Road Network (BRN) is the most important mode. BRN has 1,5 million Km, which responds for 65% of freight transportation and 95% of passenger’s displacements (ANFAVEA, 1999). Despite of its significance on Brazilian reality, recent surveys show that BRN lacks of considerable amount of investments (CNT, 1999). According to Magalhaes (1998), GDP’s share devoted to road financing decreased from 1,51% in 1975 to 0,54% in 1982 and 0,32% in 1988. Consequently, there has been a decline on network growing, which was 12% a year in 1975 and has reached 2% a year in 1996. Without the necessary financing resources to maintain BRN, Brazilian government has been conducting a concession program based upon the partnership between public and private sectors. Among the many ways of operations and management contracts of private participation in infrastructure (Silva, 2000), concession is dedicated to temporally transference of recuperation and maintenance services in exchange for exploration rights such as payment of tool feel. After pre-defined term and conditions, government reassumes control of the road. Nevertheless, Brazilian Road Concession Program (BRCP) has been recently criticized in many of its conceptions and results. Complains from users (CNT, 1997; Pires and Giambiagi, 2000), discussion on technical merits (Lee, 1996) and political divergences are some of the problems affecting the program and Brazilian society. These problems can create an environment of disharmony in BRCP, mainly because the payment of tool fee has been considered extremely high pondering the benefits and the large amount of taxes previously collected. There have been few technical and scientific researches to evaluate BRCP under a critical approach. Efforts were noticed, but they lack of a general vision and are mostly dedicated to perform specific analysis such as the evaluation of the concession results for some road segments (Galvao, 1998) and calculation of tool fees (Souza, 1997). Moreover, due to BRCP’s peculiar characteristics, international experiences and models can not be integrally adopted. Therefore, it is essential to perform a deep study on the understanding of this program in order to specify new perspectives for future developments. 3 This work intends to introduce and analyze past, present and future of BRCP. Throughout a historical analysis, we focus on the comprehension of the program since its origins, evaluation of its basic conceptions, identification of changes and tendencies and comparison of development stages. In this sense, we contribute both for the improvement of BRCP and for identification of critical aspects that will interfere in concession programs in developing countries. This paper is structured in six sections. After this introduction, the characteristics and evolution of BRN are reported in order to examine the reasons for implementation of BRCP. In the sequence, we describe the framework of BRCP focusing on achieved results. On fourth and fifth sections, a critical analysis and future perspectives are described, respectively. Finally, on the sixth section, based on the complete examination of the BRCP, conclusion topics are stated. 2. BRAZILIAN ROAD NETWORK: CHARACTERISTICS AND EVOLUTION BRN is divided into three jurisdictions that are federal, state and municipal. Federal roads are administered by DNER (National Department of Roads) and comprehend 66 thousand Km. Roads under state’s jurisdiction are controlled by DER (State Departments of Roads), which responds for 187 thousand Km. Local bureaus are responsible for 1,21 million Km of municipal roads. The basic network was established between the years of 1945 and 1975 as part of the National Plan for Terrestrial Transportation System and that defined the current technical-administrative framework (Lee, 1996). Resulting from the implementation of this plan, main urban areas were connected and its main conception and structure remains the same after 25 years. Resources for the development of BRN were originated from consumption of oil and specific road taxation that formed a national road fund. Using this fund, BRN expanded 17 times in a 30 year-period. Since 1975, situation was drastically changed towards a policy of taxes’ reorganization and creation of new funds. Resources from the national road fund were completely transferred into a development fund that supported a large variety of sectors, which led to complete suppression of any specific budget dedicated to BRN. According to LASTRAN (1998), since 1975, BRN just used resources generated from the annual national budget that were considered insufficient to keep minimal levels of operations. Under this scenario of deep restriction and gradual deterioration of BRN, Brazilian government initiated efforts towards the obtainment of additional budgetary resources. Some efforts were directed to gain international bank loans and to create new taxes, but they hardly reach the objective due to temporally nature and absence of a general plan to support them. For instance, in 1986, a tool fee-stamp was created in order to back up the recuperation of BRN. It consisted of a stamp that had to be visible on vehicle’s front glasses, otherwise it was prohibited to use the system. After many protests and judicial processes, it was suspended mainly because it was insufficient to fulfill 20% of BRN’s necessities. As a consequence of this erroneous management, conservation status of BRN sharply decreased creating various socio-economical problems in many areas of Brazil. As verified by CNT (1999), 92% of BRN were classified as strongly damaged. Magalhaes (1998) argues that these conditions are directly affecting operational cost of transportation, generating more accidents and increasing travel time. Furthermore, this situation is much 4 more critical in Brazil, since its primary economical sector is deeply dependent on BRN to reach consumers all over the country (World Bank, 1995). 3. BRAZILIAN ROAD CONCESSION PROGRAM In 1990, Brazilian government started a national plan of decentralization on public services and facilities, which was called PND (National Plan of Decentralization). Though it involved all sectors of infrastructure in the same direction, each one assumed its own criteria, objectives and actions to establish the partnership with private investors. In transportation sector, Ministry of Transportation initiated its decentralization activities in 1993 by applying the concession model in recuperate and maintain federal roads. Following, we describe these activities into two phases of development. 3.1 First phase Preliminary, a technical group was formed aiming to identify and select road segments in terms of economical return and therefore attractive to private sector. Additionally, this group dedicated to the conception and elaboration of a framework to conduct the legal process of concession. Studies were performed in approximately 52 thousand-Km of federal roads in order to select 15 thousand-Km. After this selection, it was concluded that it was essential to firstly recuperate the existent network and then move to construct of new roads. Therefore, the technical group adapted the BOT (Build, Operate and Transfer) system into a ROD (Recuperate, Operate and Devolution) model (Almeida, 1994). It is clear that the adoption of ROD in opposition to BOT leads to the reduction of the amount of investment, since construction activities were abolished. Consequently, it was expected that toll fees would be inferior to those if BOT system was applied in order to create shortterm benefits to users. Next, as part of the concession process, specific studies were conducted for each road to be transferred. These studies, which were performed by consultant companies, consist on the obtainment of information to describe operational conditions and requirements to be used in the selection process of the concessionaire. Mainly, they concentrated on the evaluation of original construction projects and on reports from field surveys. Resulting from these studies, a descriptive and detailed manual called PER (Program of Road Exploration) was generated, which contains minimum requirements and standards of quality and quantity to be reached by the concessionaire at short and long terms (DER, 1998). Some of these requirements and standards are delineated as follows: - Types and description of initial reconstruction works; - Capacity improvements and upgrade; - Specification on periodic maintenance as well as operation and conservation; - Services for users (hospital, mechanical and telecommunication); and - Time schedule for implementation of investments. After these definitions and an extensive process of legal qualification had to take place. The winner concessionaire was chosen considering the lowest toll fee to be charged from users. Variable terms of concession were established considering specific revenues of each road under concession. It was also stipulated that the payment of toll fees could only 5 initiate after the preliminary reconstruction activities, due to the long period without careful maintenance that directly affected the level of service (DNER, 1998). Additionally, it was regulated that the acquirement of financing funds was a strict attribution of concessionaires. Funds could come from bank loans, toll fee collection and commercial exploration of road area. These regulations intended to limit or eliminate any participation of public funds, but in practice it was not verified. For example, Figure 1 shows the financial structure of Presidente Dutra Highway, where it is clearly noticed that within external funds a considerable part was indirectly originated from a federal bank of development (BNDES) (World Bank, 1999). 14% BNDES Other 20% 32% 66% 68% Concessionaire Banks External financing Figure 1. Financial Structure of Presidente Dutra Highway Another important characteristic of this phase was the payment system of toll fee. Differently of systems commonly used in many countries, a fix value of toll fee was charged according to vehicle’s category. Called “open system” (Raux and Adan, 1999), it means that for every 100 Km, user had to pay the toll fee, without any consideration on the total distance of the displacement within the highway (DNER, 1998). Figure 2 shows a typical example that is still observed in most part of roads under BRCP. For instance, we noticed in this figure that intermediary traffic between cities B and C are not computed nor charged, since there is no control on them. On the other hand, trips from A to B and from A to C, despite the fact that they are related to totally different distances, are charged with the same value of toll fee. City B Legend City C Point of origin/ destination Toll Gate Access Traffic Flow Road City A Figure 2. Some typical cases of displacements within the “open system” 6 During three years, four federal roads and one bridge were conceded. Table 1 shows a brief description of the results in these concessions. Involving only 857 Km and representing investments around 1 billion US dollars (IBBTA, 1995), we observe that all roads under concession do not present extension superior to 200 Km, except Presidente Dutra Highway (BR116) that connects the most important cities of Brazil (Rio de Janeiro and Sao Paulo). It is observed that there are different values of toll fees, which can be understood due to the variety of conditions in each one but the toll fee at Rio-Niteroi Bridge can be considered extremely high since there was not structural reforms or any special projects. It is also observed that for all roads toll fee values suffered variations along the time. Though the inflation rate in this period was almost insignificant (Castro, 2000), variations on toll fee values reached 93%. Table 1. Results and characteristics of the initial concessions in Brazil Road Segment Length (Km) Date of contract signature Term of Estimated Forecasted concession investment Vehicle (years) (US $ mi) Per day Investment Toll fee /Km (U$)/ (U$/Km) at Km/years opening 1997 1998 1999 0.030 0.053 0.057 0.058 33.388 0.017 0.026 0.027 0.028 197.000 70.831 0.012 0.017 0.018 0.019 150 30.000 41.551 0.026 0.031 0.032 0.034 20 20 60.000 8.904 0.010 0.028 0.030 0.034 23 1.110 83.400 83.965,2 0,019 0,031 0.032 0.034 RioNiteroi Bridge 13.2 Dec 94 20 70 72.000 265.152 Rio de Janeiro- Juiz de For a 179.7 Oct 95 25 150 58.000 406.6 Oct 95 25 720 144.4 Nov 95 25 112.3 Mar 97 856.4 ------- Presidente Dutra Toll fee evolution (U$/Km) Rio de JaneiroAlem Paraiba OsorioPorto Alegre Total / Average Souce: DNER- Annual report: 1997, 1998, 1999. 3.2 Second phase In 1996, expansion of BRCP was firstly considered by DNER. Through the creation of a new division specifically devoted to concession, initial studies were introduced in order to evaluate more than 7 thousand-Km (DNER, 1998). Simultaneously, some state agencies also decided to institute their own process of concession according to regional needs (Castro, 2000). At State’s level, approximately 7,5 thousand-Km were independently evaluated from federal regulation. Despite of the expansionist image that was associated to this phase, in fact, it comes from the redefinition on many criteria previously applied. Mainly due to economical problems and negative reactions from users and society, serious changes on the initial conception of BRCP were urgent. Specially concerning users’ reactions, Pires and Giambiagi (2000) and CNT (1998) show that toll fee was accepted, but the value was considered very high. Moreover, some definitions in the first phase such as the “open system” of toll fee 7 collection generating uncharged traffic, the overestimation of demand and critical conditions of road conservation were decisive to the implementation of new directions on BRCP. Additionally, economical crisis in Asia devaluated Brazilian currency and consequently there was increase on interest rates affecting the obtainment of internal and external loans by concessionaires. In order to establish clear and correct definitions and then overcome the problems of first phase, the following changes were processed: - Reduction of service levels provided by concessionaires; - Reorganization of time schedules for implementation of investments; - Studies on the determination of new locations for toll gates; - Selection of the winner concessionaires considering both the lowest toll fee and bidding value; and - Revision of equivalent vehicle indexes to reduce the amount of toll fee paid by trucks (DER, 1999). The second phase is undergoing and partial results have not been displayed yet. As previous experiences generated more impacts due to user’s reaction than the benefits, results have been carefully and gradually inserted into media. It is known that about 15 thousand-Km are under concessionaire selection. Another interesting point is that the major part of the roads under concession is concentrated in South and Southeast Regions of Brazil as shown in Figure 3, notably the most economically important regions that involve 56% of BRN. Brasilia Rio de Janeiro Sao Paulo Figure 3. Roads under concession in Brazil 8 4. CRITICAL ANALYSIS BRCP has contributed to restructure the road network and provide a better condition of traffic. Before its implementation, a large part of BRN was damaged, but in 1999 it was verified that only 37,8% of federal roads need recuperation. It shows that considerable amount of investments has changed previous scenarios, reducing the number of accidents and travel time as well as the creation of several new jobs. These results were also decisive to provide a competitive level for Brazilian products in international markets. Nevertheless, despite of all positive facts, still there are several aspects leading to a deeper discussion on BRCP’s efficiency. Among them, we could point out the adoption or not of this concession program, but it will not be discussed here since the decision to proceed is already taken and consolidated. Therefore, we focus on the evaluation of critical points that are expected to be part of current discussion in Brazil and many other developing countries. The gravest point in BRCP is that it is not part of a strategic planning inside governmental sphere. Decentralization agencies of Brazilian infrastructure defined their own limits, terms and criteria without a more detailed linkage between themselves such as observed in BRCP. This conduction is totally opposite to World Bank’s (1999) recommendation that the success of road toll programs depends on the establishment of a stable structure of planning, as observed in France, Italy, Japan and Spain. In the same situation of Brazil, Indonesia and Mexico conceived their concession programs in an isolated way and consequently faced serious problems during and after the transference. In the same direction, it is clearly observed that BCRP’s conception is devoted to punctual and immediate topics. Punctual in the sense that it is not concerned on the expansion of BRN, while immediate refers to the urgent necessity to obtain resources and results to improve the traffic conditions in Brazilian roads. Contributing for this conclusion, some facts such as the adoption of ROD model and the selection of concession roads in saturated areas with great perspectives of financial revenue are noticed. First phase of BRCP concentrated on the existent roads without any preoccupation towards the construction of new ones, so investments were directed into areas with a high concentration network that just need recuperation and maintenance. This policy is extremely conservative and arguable since public-private partnerships should be used to attract investments towards the development and create incentives for implementation of new industries and economical activities all over the nation (Scott et al., 2000). Another aspect to be discussed is BRCP’s vulnerability to users’ reactions. In the first phase of BRCP, as shown in Table 1 toll fee were readjusted during a short period mainly because initial definitions (demand, recuperation, etc) were incorrect in their forecasts. This caused severe reactions and pressures over road agencies in all levels of jurisdiction (federal, state, municipal). Therefore, new definitions for second phase were influenced but decisions were taken separately, i.e., each road agency made their own criteria without specific regards to the others (Pires and Giambiagi, 2000). Consequently, negotiations have led to the reduction on toll fees and quality of services provided by concessionaires generating totally different values and levels of concession (DNER, 1999). Obviously, such behaviour expresses that BRCP’s structure is not constructed under reliable basis of confidence and on technical principles either it is indifferent to external political pressures. According to Halperin (1999), experiences in Hungary and Thailand show that the governmental agencies are very tempted to interfere in the process after demonstration of 9 user’s dissatisfaction, but hardly they can establish again the equilibrium that is reached only through tribunal disputes. Contributing for this situation of BCRP comes from the limited source of information and technical-scientific studies supporting its activities (Castro, 2000). In order to define prices, terms and conditions of operations on concession roads, concessionaires mostly confine their studies bearing the information obtained from PER. However, this manual lacks of detailed description of road conditions those are hardly updated and not so much reliable for deeper analysis. On the other side, staffs of DNER and DER agencies struggle to keep a database with all necessary information, due to budget and personnel limitations. Consequently, suitable analyses are not conducted and risk factors are overestimated influencing on toll fee definition and in the program as well. 5. FUTURE PERSPECTIVES The comprehension and projection of BRCP’s future comes from the historical and organizational understanding and its relation to socioeconomic and political issues. Until now, we discussed and detailed all the steps and their respective problems as well as the solutions that were taken along seven years of experiences. Based upon the context of BRCP’s evolution, we establish here two distinct scenarios for future perspective. The first scenario describes possible progresses considering that the same conception that has been applied. On the other hand, the second scenario is an exercise of reflection in order to create new perspectives that have not yet been debated. Following, we separately describe these scenarios, trying to identify possible developments, advantages / disadvantages and future necessities. 5.1 Scenario 1 – without alterations in BRCP The continuity of BRCP certainly would improve the most important part of BRN at a short term. Results show that the quality of services is increasing and that concessionaires, DNER and DERs are trying to create a better concession environment. However, it is not clear what kind of impact this policy can generate in a near future. There are many factors indicating that future perspectives will be correlated to the increase of conflicts between users, concessionaires, and government. Firstly, these conflicts can happen due to the absence of a central agency to act in coordination and inside PND. In the decentralization program, each agency has assumed separately a large variety of delineation, resulting, for instance, in many difficulties to integrate road, hydro, air, and railway modes. Therefore, if any action to define a common standard of regulation between the agencies is not taken, then these difficulties could create additional costs for transportation as occurred in Mexico (Ruster, 1997). Once integration problems are verified, it will be necessary to establish connections between them, which will surely affect the final costs of toll fees. In the sequence, due to punctual and immediate approach of BRCP, conflicts tend to rise. We believe that soon there will be serious problems related BRN’s saturation, because the more road conditions are improved, the more flows will naturally grow in main roads leading to reduction of capacity levels. As a natural consequence, concession roads will need expansion, but that is not a simple task since these roads are located in extensively 10 occupied areas. Clearly, there has been no previous plan to act in this direction, so costs will sharply increase. Additionally, due to a non-expansionist policy and limited concerns on roads with low demand, production costs in non-developed regions will certainly expand since transportation infrastructure has not received proper assistance or treatment. Summarizing, not only actors involved directly in concession program (users, government and concessionaires) will be affect, but socio-economical activities can suffer impacts much more complex than we can foresee right now. Finally, conflicts tend to appear due to the limited level of information offered to users and technical evaluations. Both factors will contribute to increase uncertainties related to definition of toll fees that probably will affect all actors involved. As observed by Hayashi et al. (1998) without user’s understanding it becomes difficult to gain the support of the people when introducing unfamiliar systems. On the other side, there have been restricted conditions to process extensive analysis using suitable and updated data. 5.2 Scenario 2 – creating new paradigms for BRCP In this scenario, we intend to discuss possible alternatives to solve problems and conflicts previously observed. In this attempt, new paradigms are created based on international experiences that have demonstrated creative solutions and successful and unsuccessful results. These new paradigms have to be conceived facing the current level of progress reached by BRCP, since we understand the impossibility and unfeasibility to restart the program from the scratch. Therefore, we propose two distinct approaches considering a short and a long-term perspective. The former would be concentrated on the solution of urgent issues in undergoing and for future concessions, meanwhile the second one would prepare the basis for a new conception. 5.2.1 Establishing new short-term perspectives We propose that technical evaluations should be conducted to reduce conflicts looking for a framework that has to be tuned with user’s expectations and capacity of payment. Similar to experiences in Argentine and Chile (Estache, 1996; World Bank, 1999), the more the concession process is clear and simple in its assumptions, the more it would create an attractive environment for all concession’s players. Such a concentration on user’s point of view and necessities is narrowly related to market’ delineation and segmentation using appropriated techniques as proposed by Kotler (1998). A great effort to obtain reliable information would be conducted to precisely define criteria, levels of services, benefits, risks and costs. This procedure would suppress any doubt related to toll fee values that have been charged and for future concessions (Nicola et al., 1996). Concessionaires would take advantage in the sense that their risks could be reduced and investors would have total clarification on how and when their revenues would come. Figure 4 shows a sequential orientation to perform the proposed technical evaluations. 11 MARKETING ENGENERRING EXPECTATIONS & PAYMENT CAPACITY DATABASE Criteria Service level Risk Investment Figure 4 – sequential orientation for technical evaluations 5.2.2 Conceiving new long-term perspectives A review of BRCP’s conception towards a strategic planning approach is expected to create a new dimension for Brazil’s development. As part of a national planning in a macro and long-term perspective, concession program has to be re-evaluated and re-structured in order to define targets and goals, to incorporate internal and external factors affecting concession environment and then to establish future strategies (Ng, 1993). For instance, it has to be defined what part of road system will contribute for nation’s developments such as how, where and when road concession must be considered necessary. Japanese road system, for example, is a remarkable demonstration of government intentions trying to expand not only in essential area but also in regions that need better infrastructure for socio-economical development activities (World Bank, 1999). In Brazil’s case, clear decisions have to be taken in order to specify policies of recuperation, expansion or both, always regarding previous strategies defined in a national planning level and considering the maximization of benefits for network analysis (World Bank, 1999). In the sequence of these macro definitions, based upon this backdrop a new structure for BCRP would be created. The World Bank (1999) proposes an interesting framework including legal, administrative and financial issues but more detailed descriptions would be fundamental due to BCRP’s complexities. Therefore, additional studies would be required to fulfill a complete structure of concession development. In this sense, technical contributions as theoretically proposed by Pires and Giambiagi (2000) would provide insights if applied into case studies. Finally, it would be necessary to create a coercive system to enforce and control practical actions in the concession context. As it is a developing country passing through very dynamic changes, this system should be independent from governmental influence and composed of all sectors of Brazilian society involved in the program and acknowledge technicians. As a council, it should evaluate if strategic missions and goals have been achieved and how concessionaires and government should change their practices in order to obtain success. 12 6. CONCLUSION The Brazilian concession experience has been important to repair some parts of BRN. This paper showed the reasons that made necessary the implementation of BCRP, its development and results. Nevertheless, BCRP has suffered some criticizing from the Brazilian society. We analysed the critical issues and verified their causes in order to reach a better comprehension and understanding of the program. The principal criticizing of program were: absence of a national strategic planing; conception devoted to punctual and immediate problems; vulnerability to users’ reactions; and deficiency on technicalscientific studies and information. Considering this context, we established two distinct future perspectives. Firstly, we described a scenario taking into consideration the continuity of BRCP without alterations and we verify that this direction will lead to the increasing of conflicts between concession program’s players. In the second scenario, new paradigms were proposed for short and long- term perspectives of development based upon international experiences and the understanding of BCRP. We presented some alternatives to solve and reduce current and future conflicts. Finally, we expect that our analysis will contribute to improve not only BCRP but also concession programs with similar characteristics. This work is an effort towards a critical and technical approach that is supposed to be followed by many others researches in this topic. REFERENCES Almeida, L. R. B. (1994) Privatization of Road Facilities in Brazil. Ed.GEIPOT, Brazil (In portuguese). ANFAVEA (1999) Transportation in Brazil. Statistical Yearbook of Brazilian Automotive Industry, Associação Nacional dos Fabricantes de Veículos Automotores, pp. 63-64, Brazil (In portuguese). Barrett, T. (1999) Public Private Partnerships in the Financing of European Transport Infrastructure. Seminar on Public-Private Partnerships (PPPs) in Transport Infrastructure Financing. European Conference of Ministers of Transport, Paris, France. Castro, N. (2000) The Privatization in Transportation sector in Brazil. The Privatization in Brazil, Ed. BNDES, pp. 221-278, Brazil (In portuguese). CNT (1997) The expensive toll fee is affecting freight transportation. CNT magazine, dezembro 97, pp. 44-50, Brazil (In portuguese). CNT (1998) O custo empreiteira. CNT magazine, august, pp 43-45 Brazil (In portuguese). CNT (1999) General analysis of maintenance situation in main Brazilian roads: field survey. CNT magazine, augus, Brazil (In portuguese). DER (1998) Program of road exploration. Departamento de Estrada de Rodagem de Minas Gerais, Vol.; I, II, III, IV, Brazil (In portuguese). DER (1999) Minas Gerais Program. Departamento de Estrada de Rodagem do Estado de Minas Gerais, Brazil (In portuguese). DNER (1997) Annual report of the concession program of federal roads. Brazil (In portuguese). 13 DNER (1998) Annual report of the concession program of federal roads. Brazil (In portuguese). DNER (1999) Annual report of the concession program of federal roads. Brazil (In portuguese). Estache, A., Carbajo, J. (1996) Designing toll road concessions- Lessons from Argetina. Private sector note 99. World Bank, Washington, USA. Galvao (1998) Castello- Raposo toll road- BR 0296: Environment and Social impact brief, Sao Paulo, Brazil. Halperin, R., Patrick, M. (1999) Overview of World Experience in Private Financing in the Road Sector: Some principal Cases. The World Bank, ECSIN Working Paper No.2. Available at World Bank, Europe & Central Asia, Infrastructure Sector, Washington, USA. Hayashi, Y., Zhongzhen, Y. and Omar, O. (1998) The Effects Of Economic Restructuring on China’s System for Financing Transport Infrastructure. Transportation Research A.32 (3), pp. 183-195. IBBTA (1995) Brazilian Toll Road Programme. Proceeding of the 1995 Annual Meeting e Exhibition in International Brigde, Tunnel, and Turpike Association, 72, New York, USA. Krausz, P. (1996) Practical and Political Consequences of the Processes of Privatization and Deregulation. Seminar on Public-Private Partnerships (PPPs) in Transport Infrastructure Financing. European Conference of Ministers of Transport, Paris, France. Kotler, P. (1998) Administração de Marketing. Ed. Atlas, São Paulo, Brazil (In portuguese). LANSTRAN (1998) Concession of Road in Rio Grande do Sul. Report presented at Rio Grande do Sul Federal University. Nicola, S., Kenneth, M. G. and Lou, T. (1996) Concessions in Transport. TWU-27, TWUTD, World Bank, Washington, USA. Lee, H. L. (1996) Concessao de rodovias a iniciativa privada criterios para limitacao de tarifas em processos de licitacao. Master dissertation, Santa Catarina Federal University, Brazil (In portuguese). Macdonald, J. (2000) An inquiry into the evolution and organization of privately financed infrastructure in the people’s Republic of China. Doctoral Dissertation, Tokyo University, Tokyo, Japan. Magalhaes, V. L. (1998) The roads concession and the financing of the national road system. III National Meeting of Road Maintenance, Belo Horizonte, Brazil (In portuguese). Ng, M. K. (1993) Strategic planning in Hong Kong. Town Planning Review, vol. 64, no. 3. Pires, J., Giambiagi, F. (2000) Retorno dos novos investimentos privados em contextos de incerteza: Uma proposta de mudanca do mecanismo de concessao de Rodovias no Brasil. Discussion Paper 81, BNDES, Brazil (In portuguese). Raux, C. and Andan, O. (1999) Road use conflicts: tolling strategies to preserve accessibility. Proceedings of 8th World Conference on Transport Research, pp. 353-366. Ruster, J. (1997) A Retrospective on the Mexican toll road program (1989-94). The private sector in infrastructure: strategy, regulation, and risk, The World Bank Viewpoint Note No. 125. Scott, L., Ronald, W., John, D. (2000) The influence of transport on industrial location choice: a stated preference experiment. Transportation Research A.34, pp. 515-535. 14 Silva, G. F. (2000) Toll roads. Public policy for the private sector note number 224. Souza, D. A. (1997) Avaliacao economico-financeira de modelos de calculo de tarifas para infra-estruturas rodoviarias. Master dissertation, Santa Catarina Federal University, Brazil (In portuguese). World Bank and Ministry of Construction of Japan (MOCJ) (1999) Asian toll road development program. Review of recent toll road experience in selected countries and preliminary tool kit for toll road development. Draft final report. World Bank (1995) Brazil-Federal Highway Decentralization Project. World Bank, Washington, USA. 15