Privatization of highways in Brazil: comment on the financial viability

Vol. 13 No. 3 (1993)

Jul-Sep / 1993
Published July 1, 1993
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Ruiz, Jorge Ernesto Sánchez. 1993. “Privatization of Highways in Brazil: Comment on the Financial Viability”. Brazilian Journal of Political Economy 13 (3):374-87. https://doi.org/10.1590/0101-31571993-0653.

Privatization of highways in Brazil: comment on the financial viability

Jorge Ernesto Sánchez Ruiz
Do Departamento de Economia da Pontifícia Universidade Católica de Campinas, Campinas/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 13 No. 3 (1993), Jul-Sep / 1993, Pages 374-387

Abstract

In this article the author discusses financial questions deemed as key issues, and
that should be carefully analyzed in highway privatization projects within the Brazilian reality.
Expected returns, compared tariffs, costs, demand and capital structure are the core
on this work. The author performs a simulation exercise based on one of the cases most
frequently remembered as a candidate to privatization in the State of São Paulo: the system
comprising the Anchieta and the Imigrantes Highways, which make a connection between
the City of São Paulo and the City of Santos, on the coast. The author’s conclusion indicate
that it is a feasible undertaking, provided that some restrictions/innovations are included in
its design.

JEL Classification: L33; L92.


Keywords: Privatization roads