Page 7 - ABCR ANNUAL REPORT 2016

ECONOMIC IMPACTS IN THE CONCESSIONS’ SECTOR IN 2016GENERAL CONTEXTEconomic and political crisis: fall of GDP for two consecutive years (2015 and 2016) reduced the demand for new infrastructure projects.SECTORAL CONTEXTDif culty in obtaining nancing at BNDES, Caixa Econômica Federal and Banco do Brasil, due to the tightening of the rules of the issuing of credit.of prices administered by the government, of energy, gas, petroleum, among others, that had been frozen since 2012.Increase, in 2014Increase of 90%in the cost ofpetroleum asphaltcement, compared toonly a 30% increase 7 of the National Indexof Consumer Prices(IPCA), from 2013,three times higherthan in ation.Provisional Measure 752 which amended the bidding deadlines of infrastructure concessions.Interest rate increases that reduced the capacity of the sector to raise funds.752Loss of productivity:Increase in nancial, xed and investment costs and a fall in the revenue of the concessionaires.A scal crisisin the states and increase of debt with the Union.Increased costs:delays in the release or fragmented releases of environmental licenses resulted in an increase in the xed cost of projects.Truck Drivers’ Law (2015):the increase of the excess weight limit of trucks, reduced the life of the road surface and added 15% to the cost of maintenance.Sources: ABCR and Galípolo Consultoria