The regulatory framework of the sector of highways in the country implies too much risk, making the participation of the private sector in public auctions not feasible and harming infrastructure investments in roads. This is what indicates the researcher from the Applied Economics department of FGV's Brazilian Institute of Economics (FGV/IBRE), Maurício Canêdo.The concession of roads depends on the risk perceived by the economic agents involved in the business. Since part of the investments will be made by the National Department of Transportation Infrastructure (DNIT), the companies fear that the schedule will not be met and investments not made. Companies are unable to deal with these risks, explains the economist, when he highlighted that the confidence of the private sector in the government is low in contrast to the risks involved in the administration of the roads, which are very high.Canêdo recalls the case of highway BR 262 (which connects the city of Viana, in Espírito Santo state, to João Monlevade, in Minas Gerais), in which the auction failed, and BR 050 (which goes from the city in Minas Gerais, Uberaba, to Cristalina, in Goiás). In the first, there were no interested parties. In the case of BR 050, on the other hand, granted to Consórcio Planalto, eight companies participated, considering that none of them were from outside of Brazil.The forecast is that the government will review some aspects involving the public sale of BR 262, a point that needs attention, according to Canêdo. According to the researcher, the failure lies in the modification of the processes over time. The public sale must have well designed rules to attract a large number of companies. Thus, the competition increases and so do investments. Otherwise, if there was a low demand, there's a risk that the government itself will have to invest, he concludes.To learn more about IBRE's studies, please click here (website in Portuguese)