Notice to the Market – Concession Contract
ECORODOVIAS INFRAESTRUTURA E LOGÍSTICA S.A. (“Company” or “Ecorodovias”) and its direct subsidiary ECORODOVIAS CONCESSÕES E SERVIÇOS S.A. (“ECS”), integrating the Material Fact notice disclosed on April 29, 2021, hereby announce that the indirect subsidiary Concessionária Ecovias do Araguaia S.A. (“Ecovias do Araguaia” or “Concessionaire”) and Brazil’s National Land Transport Agency (“ANTT”) signed a Concession Contract (the “Concession Contract”) to operate, for 35 years, the BR-153/414/080/TO/GO highway on the 624.1km stretch of BR-153/TO/GO between the junction with TO-070 (Aliança do Tocantins) and the junction with BR-060 (Anápolis); on the 139.6 km stretch of BR-414/GO between the junction with BR-080/GO-230(A)/324 (Assunção de Goiás) and the junction with BR-153/GO-222/ 330 (Anápolis); on the 87 km stretch of BR-080/GO between the junction with BR-414/GO-230(B) (Assunção de Goiás) and the junction with BR-153(A)/GO-342(B), totaling 850.7 km, as per the call to tender notice.
Holding do Araguaia S.A., in which ECS and GLP X Participações S.A. hold interests of 65% and 35% respectively, owns 100% of the capital stock of Ecovias do Araguaia.
As foreseen in the Concession Contract, 622 kilometers will be duplicated, with 57% expected to be completed by the tenth year of the agreement. Among the expansion works, the Concessionaire will build 144 new returns, 42 interconnections, 27 kilometres of additional lanes and 16 new accesses. On the urban stretches, 19 pedestrian overpasses, 110 bus stops, lighting at urban crossings and 90 kilometers of frontage roads have been planned. In addition, the construction of two rest areas for truck drivers is planned to ensure greater safety. The concession will also adopt the International Road Assessment Program (iRap) methodology, a modern highway safety program focused on reducing accidents and the risk of fatalities.
The start of operational services at Ecovias do Araguaia is scheduled to take place in April 2022. Starting from this date, the Concessionaire will provide medical and mechanical assistance with a specialized team and a structure consisting of 20 ambulances and 14 exclusive tow trucks for the stretch – in all, there will be more than 50 operational vehicles allocated in 19 bases of Ecovias do Araguaia. The highway operation will be monitored on a 24/7 basis by a modern Operations Control Center.
The signing of the Concession Contract by Ecovias do Araguaia is consistent with the Ecorodovias Group’s strategy of focusing on highway concession assets and lengthening the duration of its portfolio. This new Concession Contract, which brings the total of motorways to 3,892 kilometers managed by EcoRodovias, also underscores the Ecorodovias Group’s commitment to the sustainable growth of Brazilian infrastructure.
Ecorodovias reaffirms its commitment to its obligations as a publicly held company listed on the Novo Mercado segment of B3 and will disclose all and any material information in accordance with applicable laws.
São Paulo, October 1, 2021.