Friday 23 February 2024

Saudi PIF, Patria seal $1.2bn infrastructure project in Brazil

RIYADH, December 1, 2023

Patria Investments, a leader in alternative asset management strategies in Latin America, said it has partnered with Saudi Arabia’s sovereign wealth fund PIF (Public Investment Fund) in a consortium to secure a 30-year concession for the capacity extension and operation of a major new brownfield toll road project in the Brazilian state of Parana.
PIF was awarded the toll road project with Patria as part of a $1.2 billion capital expenditure investment through an official auction held by the Brazilian Government. 
The new road represents 473km in the existing toll highway system in Parana, one of the largest and most prosperous states in Brazil, with all associated operations overseen by Patria and PIF until 2053 as per the agreement.
Running from Curitiba to Guarapuava and connecting Ponta Grossa with São José dos Pinhais, the toll road capacity extension is set to be a relevant capacity boost to Parana’s current transport infrastructure and highway links that serve the southern Brazilian state. 
Home to more than 11.5 million people, Parana is ranked as one of the top-five performing states nationally with a yearly GDP of $130 billion.
The announcement of the new Parana toll road project between Patria and PIF reinforces Patria’s already well-established footprint in this growing segment of investment. Its funds currently operate over 4,000km of toll roads through which about 230 million vehicle pass every year.
The Saudi wealth fund's strategic investment in the consortium comes as part of its ongoing strategy of diversification with focus on opportunities in Latin America as a driver of Saudi Arabia’s Vision 2030 goals.
As the first major infrastructure management auction launched under the administration of Brazilian President Luiz Inacio Lula da Silva, the project reflects growing economic ties between Latin America and Gulf Cooperation Council (GCC) countries including KSA, particularly in terms of direct investment and strategic long-term partnerships.
Patria’s successful partnering with PIF taps into a growing appetite from GCC nations and sovereign funds to enter Latin America. 
Patria’s knowledge and capabilities in managing a diverse network of assets means GCC-based partners are now able to explore varied investments in a broad range of sectors that would otherwise sit outside of their usual scope of interest and expertise.
The toll road project also builds on the recent invitation extended to Saudi Arabia to join BRICS, the intergovernmental organisation consisting of Brazil, Russia, India, China, and South Africa.
Andre Sales, Managing Partner & CEO of Patria’s infrastructure vertical, expressed delight at the PIF partnership in this investment, which has now become a strong conduit between Saudi Arabia and Latin America. 
"We are confident about the outstanding quality of this toll road asset and excited with the large pipeline of new toll road concessions expected for the coming years in Brazil and other countries in the region," he stated.
Renan Filho, Brazilian Minister of Transportation (TBC), said: "Investing in transportation infrastructure is a key topic for the Brazilian government agenda, as it generates significant impact in terms of jobs and efficiency, and also positive social and environmental impact for the country. PIF and Patria’s participation in this toll road auction is a clear sign of the quality of the Brazilian transportation assets and the Federal Government’s concessions program."
As a popular and resilient asset with a clear and mature growth trajectory in terms of daily traffic use, Brazil’s toll road system is an attractive option for foreign direct investment (FDI) platforms looking for opportunities in Latin America’s largest country and most dynamic economy, he added.-TradeArabia News Service


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