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News > Brazil

Brazil Eyes Corrupt Odebrecht for Reviving Dictatorship-era Road Privatization

  • The unfinished dictatorship-era Trans-Amazonian highway near the city of Uruara, Para State, Brazil.

    The unfinished dictatorship-era Trans-Amazonian highway near the city of Uruara, Para State, Brazil. | Photo: Reuters

Published 23 January 2019

Brazil plans to privatize shipping routes including the unfinished Trans-Amazonian highway. The Infrastructure Minister says corrupt construction companies have "good know-how."

Brazil will add the Trans-Amazonian Highway to the list of projects for privatization, its infrastructure minister said Tuesday, seeking new investment to pave part of a dictatorship-era roadway which was a reason for extensive deforestation. The Infrastructure Minister says corrupt construction companies have "good know-how." 


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The road concession will be added to a priority list for privatization at a meeting next month, Infrastructure Minister Tarcisio Freitas told Reuters in an interview.

The government will package a short section of highway with a concession to run a major section of BR-163, a key northern route for shipping Brazilian grains, a ministry spokesman said later Tuesday. The 40-km (25-mile) section of the Trans-Amazonian that is up for privatization will connect BR-163 with the river port of Miritituba in the northern state of Para, the spokesman said.

Far-right President Jair Bolsonaro's government is seeking private investors to operate dozens of roads, rail and airport projects.

On Monday, government Secretary Adalberto Vasconcelos, who has been tasked with creating public-private infrastructure partnerships, said the country would privatize more airports and secure new investment for railways.

For roadways, five concessions are slated for auction this year with a long pipeline of projects to follow, according to Freitas. BR-262/381 in the state of Minas Gerais, sometimes called the "Road of Death" because its poor condition has contributed to lethal accidents, will also be put on the privatization list next month, he said.

The Trans-Amazonian highway, officially known as BR-230, was inaugurated in the 1970s under Brazil's military dictatorship, but only a fraction of its nearly 3,000 kilometers (1,864-miles) was paved and much of the existing roadway has fallen into disrepair. It stretches from the coastal state of Paraiba deep into the state of Amazonas. Original plans for it to reach the border with Peru were never completed.

Various research projects by Brazil's space agency and academics have linked the road to rising deforestation. Road improvements allowing easier access deep into the Amazon have consistently led to increased deforestation nearby.

He said that major construction firms that were implicated in corruption schemes remain unable to participate in public auctions for infrastructure projects, but could act as subcontractors for winners of concession auctions.

Engineering conglomerates implicated in corruption schemes to fix contracts include Odebrecht SA and Andrade Gutierrez SA, with those companies signing leniency deals with the government admitting guilt and agreeing to cooperate.

"They are companies that have know-how, companies with engineering (ability), companies that can provide good services," Freitas said.

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