Sao Paulo’s PiPa concession was presented in the Optimising Brownfield Asset Value Webinar:
- PiPa Road Programme (Sao Paulo, Brazil). Sao Paulo State’s Transportation Regulatory Agency (ARTESP) structured and tendered a 30-year concession contract to modernise, expand, and operate the Piracicaba-Panorama (PiPa), the largest road network ever tendered in Brazil. The PiPa covers 1,273 km of toll roads and passes through 62 municipalities. The programme focused on improving safety outcomes to address the significant problem of road deaths in Brazil and sought to attract international financing. Key solutions that helped achieve these goals were a reform of the concession contract and procurement processes that improved transparency for bidders and facilitated appropriate risk allocation. The $3 billion project, the biggest in Sao Paulo, includes 3-star or better safety standards, benefitting 2.8 million people.
- Ukraine Cities Programme (Mariupol, Ukraine). In Ukraine, 70% of the population lives in cities, which face a significant need for infrastructure investment. Mariupol, Ukraine’s tenth-largest city, has experienced damage to its infrastructure and an influx of more than 100,000 refugees as a result of regional conflict that began in 2014. A loan under IFC’s Cities Initiative is helping the city improve existing public transportation infrastructure, doubling passenger capacity and improving accessibility for people with limited incomes while rehabilitating a bus depot and bus workshop, and enhancing the city’s traffic planning and management system.
Discussion focussed on:
- Methods of developing work packages into programmes that deliver economies of scale and attract private sector participation
- Unique and effective brownfield asset procurement structures
- The importance of transparency in a successful brownfield asset procurement process, and mechanisms for improving transparency
- Perspectives on the ‘ingredients’ of bankability in a brownfield programme or project
- Solutions for streamlining the procurement process for optimal value.
- Press release about the PiPa programme
- Blog about the PiPa programme (in Portuguese)
- Story about the use of the iRAP methodology for safety on the PiPa programme
- Story about the authorisation of Consórcio Infraestrutura Brasil to operate the PiPa (in Portuguese)
- Press release about IFC’s work with Mariupol
- Story about IFC’s work with Mariupol
- Story about the IFC’s Ukraine Cities Programme
The webinar was part of the GI Hub and IFC Webinar Series New Deals: Funding Solutions for the Future of Infrastructure.
The series features global project teams sharing the practical solutions and funding innovations they have used to create bankable projects while attracting private investment, de-risking the investment, optimising asset value, and achieving sustainable development goals.
Each session highlights project characteristics that enabled successful completion and factors in the enabling environment – such as policy and regulatory factors – that contributed to success or had to be overcome.
The webinars are open to all. For notices of future sessions, subscribe here.
iRAP’s global vision for systematic long-term investment in 3-, 4- and 5-star highways and city streets for all road users in all countries worldwide will help save lives and achieve the SDGs.
Social impact investing provides an exciting opportunity to ‘unlock’ these win-win-win benefits of improving road safety by mobilising private-sector finance and donor funding. With results-based financing to achieve 75% of travel that is 3-star or better for pedestrians, cyclists, motorcyclists and vehicle and public transport occupants worldwide by 2030 over 100 million people can be spared the burden of road trauma over the life of the infrastructure investments.
For more information on Social Impact Investment and private capital mobilisation for road safety, visit https://irap.org/project/innovation-social-impact-investment/.
Images courtesy of Global Infrastructure Hub and IFC