14/06/2015 11h10 - Updated 14/06/2015 11h10

Effect Lava jet must make room in contention for awards

Photo: Jorge Andrade (Wikimedia Commons)
Photo: Jorge Andrade (Wikimedia Commons)

The involvement of large companies in Operation Lava Jato should open new groups for space, domestic and foreign, in contention for awards launched by the federal government this week.

Protagonists of the last auctions of roads and airports, construction companies are undercapitalised – or bankruptcy – and hardly will be able to enter the fray for a project.

In an adverse economic scenario and restricted access to credit, the differential will be financing conditions. E, in this regard, foreigners can come out ahead, experts say.

“Life is not easy for Brazilian companies, or for those who are out of Lava Jato. Many are leveraged and without credit, which limits participation in large projects”, says lawyer, Robertson Emerenciano, Partner Emerenciano office, Baggio and Associates.

The participation of any investor, However, will depend on the trading environment, the conditions set by the government in each project and regulatory predictability signaling.

no outside, despite the country's credibility to be a little shaken by bad decisions in the first term of President Dilma Rousseff, there is interest in investing in Brazil.

The social infrastructure Area TozziniFreire Lawyers, Antonio Felix Araujo Cintra, account that, We last months, United States we esteve, Canada and Japan making presentations to a number of investors, and most are looking at opportunities in Brazil.

According to him, it is pension funds and sovereign wealth funds with cash to invest.

“The return in Brazil is larger than the standard offered out there. after all, we are still the 7th or 8th largest economy in the world, with a huge need for infrastructure investment.”

In addition to the funds, foreign construction companies also move to enter the country, experts say. One strategy is to buy smaller companies with expertise in the domestic market, as did the Spanish Essentium the acquisition of Delta, that was in bankruptcy, after being accused of involvement in a corruption scheme 2010.

“I was in the United States and Spain and investors there want and are interested in coming to Brazil. If the program is well done, there will be people to invest”, said the member of the financial advisory BF Capital, Renato Sucupira.

On the participation of Brazilian companies in auctions, he states that there are doubts about the capacity of the capital market, still incipient, to finance projects.

Even so, some national groups must overcome the challenges and participate in disputes, especially of airports and roads.

The potential investors list, are Ecorodovias and CCR, two strong competitors rounded off highways and airports in recent auctions.

Joins this group private equity funds, who raised fortunes in recent years, and other expressionless in the sector, as JSL.

The company disputed the granting of the Rio-Niteroi Bridge and has already shown interest in infrastructure.

The average construction companies also expect space for abocanharem some assets, especially those smaller, requiring less capital.

Several companies from all over Brazil are looking for the Paulista Association of Construction Entrepreneurs (Apeop) to form groups with the capacity to compete concessions.

“The Apeop be an inducer in forming consortia. I hope that more flexible rules for these companies to participate”, says the president of the association, Luciano Amadio.

But experts warn that it takes agility to take the role of plan.

“It is the package that will bring people. Are the conditions and formatting. For a while, we talk about what to do and not to do. This has to be set quickly”, says the president of the Brazilian Chamber of Construction Industry (CBIC), José Carlos Rodrigues Martins. The information is the newspaper O Estado de S. Paulo.

Source: Exame.com

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