Nascentes das Gerais (IDBI-12110-01)

  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 16, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Concessionaria da Rodovia MG-050 S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 106.14 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 400
Converted using 2019-07-16 exchange rate.
Project Cost (USD)
$ 346.81 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 1300
Converted using 2019-07-19 exchange rate.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Apr 2, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

IDB Invest financing will allow for the expansion and improvement of approximately 371 kilometers of state highway, connecting metropolitan Belo Horizonte to the municipality of Sao Sebastiao do Paraiso at the border with the state of Sao Paulo (the "Project"). The highway network cuts directly through 22 municipalities in Minas Gerais and influences 50 cities, home to 1.3 million inhabitants (i.e., 7.4% of the state's population). It is estimated that 7.7% of Minas Gerais' GDP (Gross Domestic Product) is concentrated in the MG-050 system catchment area.

The investment program, during the 25 years of the concession period, consists in the expansion and improvement of the existing highway, including 82.3 km of highway shoulder improvements 52.9 kilometers of new roads, 114 kilometers of third lane expansions, and construction of 17 interchanges, 12 bridges, viaducts and other structural works, as well as nine pedestrian overpasses or underpasses. IDB Invest will finance the investments executed from mid-2017 to 2022, improving road conditions and increasing user safety.

Project cost is R$1.3 billion, which will be financed by IDB Invest through a long-term loan in an amount not to exceed R$400 million with a term of up to 12 years; capital contribution and cash from operations of R$567 million and debentures of R$310 million.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

This project has been classified as Category B according to IDB Invest's Environmental and Social Sustainability Policy. The risks and impacts are site specific, moderate in magnitude, and may be addressed through existing mitigation measures that are simple to implement.

Among the impacts associated with this type of operation are aspects of worker health and safety and adaptations of working conditions, community safety in the vicinity of the highway and its users, environmental aspects of highway construction and maintenance, land acquisition and involuntary resettlement in areas bordering the rights of way, and biodiversity conservation in protected areas.

The project had been granted an installation license by the grantor of the concession, SETOP (State Secretary of Transportation and Public Works), issued in 2006. In July 2008 an Operation License (LO 015/2008) was issued to the Client, valid until July 2012, authorizing both the operation of the road system and the implementation of road improvements. In March 2012 Nascentes requested for a License renewal, which was denied. In June 2017 Nascentes and SUPRAM signed a Conduct Adjustment Agreement (TACs LOC/ASF/38/2017 and TAC.LIF/ASF/39/2017) that guaranteed the regularity of the operation. In June 2018 a new TAC was signed (TAC.LOC/ASF/16/2018) allowing for the road system operation. The Environmental Licenses LIC/LO 001/2018 were issued on Abril 2018, valid for 6 years for the road works and 10 years for the road operation. A final Operational license is expected to be issued until November 2019.

The LIC/LO covers most of the works that are the object of the concession, except one stretch of road (construction of an intersection) situated in an internal area of the Conservation Unit of the Serra da Canastra National Park. SUPRAM ASF requested segregation of that part of the process and ordered that it be licensed in a separate procedure, but relying on the same EIA/RIMA since that study had already incorporated that region of the park in its social and environmental analyses.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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Alexandre Tujisoki - CFO
+55 11 3508 9600

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