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Portuguese Construction Giant Seals 30-Year Deal for Major Brazil Highway Project

Mota-Engil secures a 30-year concession for 502 km of Brazilian motorways, a €700M investment expanding the Portuguese firm's footprint in Latin America.

Aerial view of a modern highway winding through a lush green landscape under a clear sky

Portugal-based construction group Mota-Engil has secured a 30-year concession to operate and modernise 502 km of motorways in Brazil's northeast, a contract the company says will lock in sustainable revenues for decades and deepen its footprint in Latin America.

The project, known as Rota dos Sertões, spans three federal highways — BR-116/BA, BR-116/PE and BR-324/BA — linking Feira de Santana in Bahia state to Salgueiro in Pernambuco. The contract was signed on 1 October 2026, after the consortium won a competitive auction in May with a 19.60% discount on the basic toll tariff.

Investment and scope

The consortium, named Consórcio 116 Sertões, plans to invest approximately R$4.1 billion (about €700 million) in infrastructure works over the life of the contract. Total contract value—including operation and maintenance—reaches roughly R$8.5 billion.

Main interventions include:

• Doubling approximately 108 km of single-lane roads

• Building 5 km of additional lanes and 45 km of marginal service roads

• Constructing 12 pedestrian overpasses and 24 bus stops

• Implementing a new bypass in Serrinha (Bahia)

• Rehabilitating pavement and modernising operational systems

The corridor is strategic for moving agricultural and industrial output from Brazil's interior to coastal markets, and for connecting the states of Bahia and Pernambuco.

Consortium structure

Mota-Engil holds a 33% stake in the consortium. Its partners are Nova Infra Investimentos, a vehicle of Novonor (formerly Odebrecht), with 34%; and Galápagos Participações, an investment fund, with 33%. For Nova Infra, the award marks a return to federal road auctions after years away from public tenders. For Galápagos, it is the firm's first roadway concession.

In a statement to Portugal's securities regulator, the Comissão do Mercado de Valores Mobiliários (CMVM), Mota-Engil said the award reinforces its presence in Brazil's road concession market, consolidates its order book in Latin America, and diversifies its project portfolio with sustainable medium- to long-term revenue flows.

Context for Portugal readers

At roughly €700 million, the investment value alone approaches half the annual turnover of a major Portuguese construction group. For comparison, €700 million is equivalent to about 14 times the minimum monthly wage in Portugal (€820 in 2026) or roughly the cost of building a new major metropolitan hospital.

Mota-Engil already operates road concessions in Brazil, including the Rodovias do Tietê network, and holds concessions in Mexico. The Rota dos Sertões contract stands out as one of its largest single road concessions in Latin America in the past five years, exceeding the scale of recent construction contracts it signed in Mexico in mid-2026 worth €185 million.

Brazil's federal government has prioritised road concessions to private operators as a way to finance infrastructure upgrades without expanding public debt. For residents and businesses in Bahia and Pernambuco, the project promises reduced travel times, improved safety via separated lanes and pedestrian crossings, and lower logistics costs—factors that can make the region more attractive to invest in.

The concession term runs for 30 years from signing. Infrastructure works are scheduled in phases, with toll operations beginning once initial upgrades are completed.

Tomás Ferreira
Author

Tomás Ferreira

Business & Economy Editor

Writes about markets, startups, and the digital forces reshaping Portugal's economy. Believes good financial journalism should make complex topics feel approachable without cutting corners.