Today, Brazil has the second longesthighway network under private concessions in the world. Thispaper analyzes Brazil's experience under the two firstphases of the federal road concession program, andhighlights some of the program's strengths and areasfor further development. Despite the unfolding worldfinancial and economic crisis, the potential for furtherprivate participation in the sector appears very good. Thispaper essentially argues that it may be time for Brazil torevamp its current models for private participation in thesector, which may soon reach their limit in terms of beingable to meet efficiently the needs of a growing economy. Insummary, Brazil could: 1) diversify its toll road model toallow for more innovative public-private partnershipstructures; 2) update its toll regulatory and contractualframework to overcome some of the design problems that haveled to relatively inefficient tolling; 3) consolidate theinstitutional framework for road concessions to give astabilized basis for further developments; 4) develop apolicy framework adapted to the current Brazilianenvironment, taking into account the need to ensureharmonized levels of service and tolls across the country;and 5) adapt the sector financing framework to the risingcapacity of private markets.
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