The Evolution of Bus Concession Contracts in Brazilian Cities

• Grant number: 25/02933-1
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: May 01, 2025
• End date: April 30, 2026
• Field of knowledge: Applied Social Sciences - Economics - Regional and Urban Economics
• Principal Investigator: Ciro Biderman
• Grantee: Beatriz Berghe Schor
• Host Institution: Escola de Administração de Empresas de São Paulo (EAESP). Fundação Getúlio Vargas (FGV). São Paulo , SP, Brazil
• Associated research grant: 21/11959-3 - CITIES: Center for Innovation in Urban Public Policies, AP.CCD

Abstract

In large and medium-sized urban centers in Brazil, as well as in some smaller cities, urban public transportation services are predominantly operated through concession contracts. This is due to the fact that the Federal Constitution of 1988, in its Article 30, Section V, stipulates that brazilian municipalities are responsible for "organizing and providing, directly or through concession or permission regimes, public services of local interest, including collective transportation, which is of an essential nature." States also hold responsibilities in this area, as intercity collective transportation falls under state jurisdiction, and integrated collective transportation in metropolitan regions often ends up under state oversight due to the delegation of authority. Similarly, the Federal District is responsible for public transportation within its geographical boundaries. However, the responsible federal entities took considerable time to implement the first concessions in brazilian cities, and the management of these contracts in the urban bus sector, as well as the financing of public bus systems, pose significant challenges for public authorities in the country. This project aims to conduct an unprecedented analysis of the contractual model governing collective bus transportation systems in the country, in light of international literature on urban economics and incentives in public contracts.