Requirements for extending railway concessions are unconstitutional

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The requirements for early extension of railway concessions, established in Law contradict the constitutional principles of efficiency, impersonality, morality and reasonableness, in addition to violating the bidding rule and compromising the quality of services offered to society. With this understanding, the Attorney General of the Republic, Raquel Dodge, questioned, in the Federal Supreme Court, the constitutionality of Law 13,334/2016. The PGR stated that the requirements set out in the law are insufficient to ensure the provision of adequate service by the concessionaires.

Thus, there is harm to the public interest and Iran Telegram Number Data users of rail transport, says the attorney general. “The objective requirements for early extension favor concessionaires that have not managed, in recent years, to execute the concession contract correctly and efficiently”, pointed out Raquel. The law is the result of the conversion of Provisional Measure 752/2016, which provided for the possibility of early extension of contracts as long as the concessionaire makes investments not foreseen in the original contract and meets certain conditions. The topic has been monitored since 2016 by the Chamber of Consumer and Economic Order of the Federal Public Ministry.



The body had already alerted the National Land Transport Agency about the need to evaluate, in early extension processes, the economic advantage of the measure compared to holding a new tender. The MPF had also recommended the requirement for effective prior payment of amounts owed by current concessionaires and the impacts of the choice for integration of the national network. Quality of transport One of the points highlighted by the PGR in the action as potentially harmful to the quality of national rail transport is the reduction that the new law made to the concept of “adequate service”, a requirement that will be evaluated by the government in early extension requests.