Good morning, ladies and gentlemen. Thank you for waiting. Welcome to the earnings release call of CCR S.A. for the results of the first quarter 23. We would like to inform that it's being recorded and simultaneously translated. Translation is available by clicking on the button Interpretation. If you are listening in English, there is an option of muting original audio. Before moving on, we would like to clarify that forward-looking statements that may be made during this conference call with respect to business prospects, forecasts, operational and financial goals of the company, are all based on beliefs and assumptions of the executive board of CCR, as well as currently available information. They are no guarantee of performance. They involve risks and uncertainties since they relate to future events, and therefore depend on circumstances which may or may not occur.
Investors should understand that general economic conditions, the market and other operational factors may affect the future performance of the company and lead to results which may differ materially from those expressed in these forward-looking statements. I would like now to hand it over to Waldo Perez, CFO and IRO. You can start now.
Thank you very much, operator. Good morning, everyone. I would like to thank you for your participation, where we are going to present the earnings release of the 1st quarter, 23. I would like to let you know that I have Flávia Godoy, our RI Superintendent, Douglas Ribeiro, and Caique Moraes, also from our Investor Relations team.
Before moving on with the results of the first quarter, I would like to thank the Board of Directors of CCR of trusting me during the whole time that I played as interim CEO and all the top management of CCR for the partnership during this time. I would like to welcome our new CEO, Miguel Setas, who is going to carry on with the successful implementation of CCR. Miguel has over 25 years of experience in different leadership roles in energy and infrastructure. He has broad experience in regulated industries. He has worked in Brasil for 13 years, most of the time as CEO of EDP Brasil.
For the past two years, he was the chairman of the Board of Directors of EDP Brasil, he also worked as executive board of directors of EDP Multinational Company, being responsible for the business of infrastructure in Portugal, Spain and Brazil. I have now the honor to invite him to start our earnings release. Thank you, Waldo. I would like to start by saying that I'm very glad to be here. I started on April 24th, I'm really honored to take over this challenge, this new mission of leading the group in Brazil and abroad. I would like to start by telling you what our strategic positioning is in a conceptual fashion. First, we are fully focused on creating value to our shareholders, there are five components which are very important. First, profitable, sustainable growth. That's part of the group gives us a long-term understanding.
That's our growth agenda. Secondly, a constant pursuit for premium or superior operating efficiency, which allows us to be a reference in the area in terms of costs of our operations. Associated with that, there is also CapEx execution. We have a very important economic financial commitments and investments to be done in the future, and they have to be done with excellence, understanding the financial and all the operation we have in hand. Finally, controlled risk, which is the fourth point. It's a vision that the company, as part of a complex, diversified operation, should have a very precise, controlled risk policy. Finally, a clear policy of dividends, giving us a very clear understanding of how we are going to have our dividend sharing. The second dimension concerns a clear strategy with very well-defined capital allocation.
This is something that adds value to our shareholders, of course. We have very clear capital allocation strategy. Finally, financial discipline and optimized capital structure, which is part of our journey at CCR, and we have to keep on adopting this kind of vision. The fourth dimension, we want to give an active management of our business portfolio in a flexible way, so that we can constantly analyze our portfolio with flexibility, leading to capital recycling whenever necessary. Leveraging further our growth agenda. Finally, something that we are always recognized for, which is to take a leading position in ESG. We are going to maintain our action in environmental, also governance, and society. Considering all the vision about our strategic position, I would like also to share with you a very clear message about our commitment with our strategic plan. We have an approved ambition.
It has been approved by the executive board and the board of directors, defined in 2021, and we are fully committed with it. Focused on three main areas: in toll roads, urban mobility, and airports. These are the three main areas of focus in our business, the core of our business, and we are fully concerned there. They form our vision. Organization structure, and also considering ESG, client, employee and shareholders. Here we have also the enablers. We need an agile, simplified organizational structure that provides really efficacy, a culture of the group, management model based on building value and the use of data and technology so that it can be a competitive advantage to all of us. I'm joining the group now, and I hope that I can promote a strategic update of our vision in 2023.
Things are somewhat different from what it used to be in 2021 when this vision was first conceived. I think it's a time to reanalyze everything towards the future of our company. I would also like to tell you that together with our CFO and IR team, led by Flávia Godoy, we are going to keep on analyzing the relationship of our IR team and the market. In upcoming months, I am planning to have closer personal interactions with all our investors, analysts and the market at large. Please, thank you very much for listening to me. I would like to hand it over to Waldo Perez, and once we get to the end of the session, I'll be here to answer the questions. Great. Now let's go into our highlights.
We've been focused on delivering recently achieved projects. We are going to focus on capital allocation with discipline and selectivity. In urban mobility, we focused on training teams and making investments in modernizing our infrastructure, especially of Lines 8 and 9. We've received the first of the 36 new trains that have been acquired for the concession area. Very important for modernization and improvement of ongoing actions in all the infrastructure of our 2 lines. This package of nearly BRL 4 billion will be executed in the first years of concession, which is a 30-year plan. In RioSP, we started our Free Flow operations in BR-101. It is the first electronic toll pay system in Brazil, which really shows how much we can innovate.
In that specific toll road, 60% of the cars already have a tag, and we can see compliance increasing. In airport operations, we've been increasing safety in our operations, offering a more pleasant experience to our customers and developing the potentialities of each market. In the first quarter 2023, 5 airports which are part of Bloco Sul and Bloco Central have more passengers than what we used to have before the pandemic. Bloco Sul were Goiânia, Pelotas e Navegantes. Bloco Central, Goiânia and Palmas. We are also going to sign contracts with partners to start investments in the upcoming 18 months. It's important to highlight that we were awarded Brasil Mais Imperatriz as the best regional airport in the Northeast and the best regional airport in Brazil. We've added the route of Confins to Curaçao, connecting two airports operated by us.
In the first quarter, we've also made important announcements. One was the celebration of the third amendment to our contract with MSVia, which extended for 24 months, the first amendment to our concession contract. As such, the new tender period will be until March 25. Another important action was the signature of the agreement between CCR Barcas and Rio de Janeiro. The main purpose was to acknowledge the nullity of the concession contract, make sure that we can keep on providing public service through the concession area. Also define that the 24 months granted to the state will be preceded by 12 non-interrupted month as of February 23. Some additional timeframe if required.
Defining value and payment terms of the operating cost in providing this service and also defining conditions to go back the concession to the state and all the private assets part of the concession in the state where it is. With this very important result, Barcas will get BRL 697 million as of December 2022, which will be paid between 2023 and 2024 as an indemnification for previous work of obligations of the state of Rio de Janeiro, which are part of the concession contract. In March 2023, we've already received BRL 288 and in May, we are going to get BRL 60.5 million as the second installment.
We've also had the announcement of the partial return of the land, which correspond to 29.76% of the total area, where a new airport would be implemented in the metropolitan region of São Paulo, known as NASP project. There was no approval that allowed this implementation of a private airport in the region. Considering market conditions, CCR has decided to discontinue project NASP. This decision is part of a continuous strategy of rational capital allocation. The company is paying close attention to the opportunities of valuing and using the remaining portion of the land. We've closed 1 more quarter with a very solid balance sheet and comfortable cash position. Our rate, which is 2.9 times, which is stable when compared to the indicators of the fourth quarter 2022.
To optimize the management of indebtedness and increase the debt duration, it's important to say that we've maintained our actions to work on long-term refunding of 2023 and 2024, primarily for those that were part of projects from 2021. Well-controlled leverage has provided appropriate growth strategy implementation. We're very optimistic about the perspective of new projects in our pipeline. Any new project will follow the diligence that we normally provide to studies with appropriate capital allocation discipline. Finally, at the end of the quarter, we have very successfully held the second ESG forum, where we shared with our shareholders our goals in 2022, the governance structure of CCR, the strategy of its ESG master plan, all the main achievements and goal for 2023.
Fully aligned with our best governance practice and transparency, CCR has published the integrated report of 2022 based on the GRI standard guidelines and the CVM Resolution 14 about integrated report. We've also presented some KPI of the Sustainability Accounting Standards Board, showing value generation in all the different types of capital. Manufactured, intellectual, natural, social. For that, I would like to hand it over to Fabia Gottschalk, who's going to go into details of the results of the first quarter 2022. Good morning. Thank you very much for being with us once again for the earnings release sharing. I'm going to start with our operating highlights. Our company has reached levels in equivalent vehicles and also transported passengers for urban mobility and airport. Starting from toll roads, we had 6.3% performance in the first quarter 2023 over the first quarter 2022.
The growth was driven by light vehicles, which had 12.1% in performance over the same quarter last year. The performance resulted primarily from trips that took place during the first quarter 2023. Heavy-duty trucks had 1.6% performance in the first quarter 2023 over the first quarter 2022. This performance was primarily due to the MSVia concessionaire, which had very atypical export of corn between January and February, and also the movement of heavy trucks in the concession areas of the state of São Paulo. There were two concessionaires in Sul, Via Sul and Via Costeira in the south of Brazil, which had the traffic partially affected by some interruptions of the roads BR-101 and 367, some areas located in the state of Santa Catarina. Speaking of urban mobility, our performance was 31.4%.
The performance resulted primarily from transported passengers. We've been observing a more regularized performance in all the different modalities. Last year, in the first quarter 2022, passengers movement was affected by Omicron variant of COVID. We've been observing some picking up in this segment, a very important recovery. When we compare against pre-pandemic in urban mobility, there is about a 10% performance below what used to be before the pandemic. When we compare that to airport, we are speaking about a demand of about 3% below what we used to have before the pandemic. As you can observe, there has been a significant increase following that trend of recovery that the company has been showing in previous quarter, with a variation of 132%.
2 concessionaires had relevant variations within this first quarter of 2023, which is Keyport and Aeres, both of them showing consolidation in international routes and a load factor which was greater than what had been presented in the first quarter 2022. Going into EBITDA. We've reached an EBITDA close to BRL 2 billion in the first quarter 2023, with a 19% variation. EBITDA is a combination of revenues plus inflation. Our business are protected by inflation. On the cost side, the cost is adjusted basically on the inflation rate. Reaching relevant levels, plus very efficient cost control, have driven a margin expansion of 1.2 percentage points.
Going into evolution of costs, where we can see the main variations in Q1 2023, it's important to highlight that during 2022, the company consolidated important projects which had been obtained in 2021. Lines 8 and 9 of Via Mobilidade, SPVias, Bloco Sul, Bloco Central, and Pampulha Airport. Excluding from the costs non-recurring effects, there was an increase of 13.4% in the variation of Q1 2023 over Q1 2022. The main variations in the quarter that I would like to highlight are construction costs, which is 140% variation resulting from the investment schedule. Investments that we have made in Lines 8 and 9 and SPVias, totaling approximately BRL 300 million. Another highlight that I would like to make is the provisions for maintenance.
There was also an increase compared to the first quarter 2022, especially resulting from the final agreement that the company has made with new provisions of maintenance for Concessionaire AutoBAn and Concessionaire SCP Vias. Another important highlight shown here is the line of other costs. Under the line of other costs, the company has experienced two non-recurring effects. One, it is the provision for return of 29.76% of NASP land, plus all the taxes over title transfer, totaling BRL 121 million. We are calling it non-recurring effect, so it's being adjusted in our EBITDA. The second non-recurring effect that was experienced and was part of under cost lines was the investments in Via Oeste, totaling BRL 165 million. We are speaking of investments that do not generate future economic benefit, therefore, they were recorded as costs.
Moving on, you can see in this slide the EBITDA evolution, which had a 19% variation. Starting from EBITDA of BRL 2.2 billion to get to adjusted EBITDA. The company has been made a number of adjustments. A non-cash adjustments such as provision of maintenance, anticipated expenses, and we are also adjusting our EBITDA by three non-recurring facts. Return of NASP return of land, as I've just mentioned. The constructions at Via Oeste, and also the agreement with Barcas signed in the first quarter 2023. With full recognition of revenues of BRL 569. Making those three non-recurring adjustments, the EBITDA of our company got close to BRL 2 billion, with significant growth of 19% year-over-year. Going into the next slide, and just speaking of evolution of financial result. Our net financial results showed a decrease of 4.6%.
The first quarter 2022, the company had a non-recurring effect in concession area Aeres, which resulted from prepayment of debt. It had an impact of BRL 105 million in the first quarter 2022. When we compare the evolution of the main indicators of financial results of the company, there was an increase of interest rate and liabilities, resulting primarily from a greater stock of debt, 5.3%, and also the higher average CDI of 3.4 percentage point. There was a greater capitalization of interest rates on lines 8 and 9 going into financial lines and others. It's the highest cash of the company, an average cash with variation of 18.3% in the first quarter 2023 over the first quarter 2022.
With these items, we have closed the quarter with financial results of net financial results of BRL 839 million, with a negative variation of 4.6% over the first quarter 2022. Going into the area of debt. Slide 11. The company has been elongating our debt profile. The concentrations that we had in 2023 and 2024 will be appropriately balanced with long-term funding lines from BNDES. Lines 8 and 9 have signed BRL 4.6 billion of long-term funding from BNDES, and out of the total, BRL 2.5 billion is a green bond. The first green bond issued by the company in the market, and it was just included in April. The replacement of long-term payment of BNDES will only be identified in the second quarter 2023.
The refunding, the long-term refunding of Lines 8 and 9 has already been rebalanced. We are talking about a BRL 2.5 billion. It's a 25-year loan, very long-term. The company has also negotiated long-term funding with BNDES for Bloco Sul and Bloco Central, and we have very advanced negotiations. We are talking about bridge loans, which will be due in 2024, but we want to conclude the negotiation still in 2023. For Rio SCP, where we have a bridge loan due in 2024, but we are speaking of advanced negotiations according to the schedules that we have agreed on with BNDES. For 2023, the total amount of BRL 6.6 billion, in addition to considering Lines 8 and 9 with BRL 3 billion, which is going to be part of a substitution.
Our company has some additional funds which are allocated, or loans allocated in the holding, BRL 2 billion, which will be amortized until the end of the year. We are going to go through an amortization till the end of year. BRL 5 billion of maturity in 2023 have already been adjusted. Now the company is working on new emissions, smaller funds for some projects dealing with very mature subsidiaries. The same performance is expected for 2024. Constantly looking for a elongation of the company's debt. As additional information, our company has concluded the first quarter 2023 with gross debt of BRL 28.9 billion, an increase of 5.3% over the first quarter 2022. We've also concluded the quarter with a very comfortable leverage measured by net debt over adjusted EBITDA, 2.9 times. Very comfortable indicator.
With that, the company can carry on with the implementation of its growth strategy. Now going into different new funds raised the first quarter 2023. BRL 175 million have been raised. If we add to ViaRio, which is part of consolidated with all joint controlled companies, it's an additional BRL 600 million. ViaRio gathered BRL 600 million in two series, one 80-year series and a second 11-year series. The first CDI plus 1.9, and the second one CDI plus 3.7%. Now going into evolution of net income, a combination of everything that we've presented so far. We've completed the first quarter with net income of BRL 629. Adjusting it by non-recurring effect, the return of NASP return of land, 30% of the land returned.
The effect of the constructions in Via Oeste recognized as cost, totaling BRL 109 million in the net income, and also the Barca settlement of BRL 543 million. It takes us to solid net income of BRL 317 million, compared to adjusted net income in the first quarter of 2022, which was negative in BRL 15 million. Before I close, let me go through the next slide, addressing investments and maintenance in the first quarter 2023. My highlight goes to Via Mobilidade lines eight and nine. The company has a commitment and a plan of investments over BRL 4 billion. In the first quarter 2023, we've managed to make investments of BRL 752 million in the acquisition of new trains.
In the toll roads, I would like to emphasize the investments for RioSP, amounting to BRL 213 million. Investments in pavement recovery and installation of 10 operation service spaces and Free Flow system. Also in CCR ViaSul, we're made investments in additional lanes and applications. In the airport, in sector, we've made some investments focused on making adjustments to meet airport specifications, especially in Bloco Sul and Setral, amounting to BRL 23 million. The investments in the first quarter 2023 totally amounted to BRL 1.3 billion. Let me remind you that we have also invested in CCR ViaOeste. We invested BRL 165 million, which was recognized as cost because it does not generate future economic benefit to the company. This is my last slide, and I would like once again to thank you all for your participation. With that, let me hand it over to the operator.
Thank you. Now we are going to start the Q&A live session. I would like to remind you that to ask an audio question, you may click Q&A, write your name and company. When your name is announced, you are going to get information in your screen to activate your microphone and get unmuted. Let's wait for us to pull the question. The first question comes from George Miller of Morgan Stanley. Your microphone has already been enabled.
Great. Thank you very much, operator. Good morning, Miguel, Waldo, Flávia. Thank you for the call. I would like to start by congratulating Miguel for his new position and wish you great success. My question concerns the strategic positioning and allocation of capital mentioned by Miguel, especially in airport.
You've been mentioning a lot about the possibility of having a joint venture with international players. I would like to know if you still anticipate perspectives along these lines or if you may think about selling your assets outside Brazil. We would like to hear about Keyport and the situation of my query as part of your answer. Thank you. Thank you. Thank you, George. As Miguel pointed out in his presentation, we've been repeatedly emphasized that we've been analyzing our whole portfolio in a very dynamic fashion. Always reviewing assets and considering opportunities that would add value to CCR and its shareholders. Concerning airports, it's known that we have considered some relevant opportunities in the market with potential partners. At some point, we considered bringing a partner to this platform, but we decided not to go into these different possibilities.
Today we focus on delivering our business plan, be in airports or any other transportation modalities. We've made very significant investments, and we are 100% dedicated to it. We are constantly reviewing the strategies of attracting new partners to all the different modalities or to some specific businesses. We are only going to make transactions if the partner brings value to the group as a whole. Concerning Keyport, the transaction was announced in September last year, if I'm not mistaken. Part of the shares would be sold to Tamokori Fund. The transaction had a number of preceding conditions. We have some rights in our shareholders agreement, and we are considering the situation and discussions until we make a decision on how we are going to move ahead.
Thank you for your welcome message, George. If I can just make a brief comment about the disinvestment of foreign assets. As we've mentioned, analyzing our portfolio in a very flexible way, we are constantly looking for opportunities to build value, to create synergies. Which in other words, means, all assets can be considered when it comes to capital recycling. This is constantly on the table. Great. It means you are not excluding any possibilities. Okay, that's great. Thank you all very much for your detailed answers, and have a great day.
Our next question comes from Rogerio Araujo, Bank of America.
Hello. Good morning, Waldo, Miguel, Flávia. Thank you. Good luck to Miguel in his new role. I have two quick questions. First, I know that Miguel has been in his role for a few days. Maybe it's too early to say, if you can please share your first impression and where you can see the main opportunities in CCR. Cost reduction is part of that. In capital recycling, I would like to understand the rationale behind it. Are you going to sell mature assets that have already have a de-risking process or maybe have a lower tiering, maybe something that CCR is observing? Are you thinking about a strategy, thinking about factor strategy? Just allow me to understand better the investment strategy, I'll go into the second question. Thank you.
Thank you, Rogerio. Thank you for your welcome remarks as well. It's been only 2 weeks with Waldo and the top management and just a deep dive into the business. I've seen that the company, in terms of governance, financial management and risk management policies, is fully consolidated. This is something that has really impressed me. In addition to scale, of course, and the competence of the group, you know, the businesses that it manages. If you ask me, the priorities in a very simplified way, and of course, these are my very initial impressions, and you should take it as a caveat. Profitable, sustainable growth agenda.
The group has been growing in recent years. Important investments have been made. They have to be executed. We have this important electoral commitments for upcoming years, and this is probably taking us, and capital investment and recycling will be part of that, so that we can maintain sustainable growth constantly, not by impulse, something which is uniform throughout time. This is something essential. Secondly, efficiency.
Our group has an active policy of constantly striving for efficiency. I've confirmed that in the first 2 weeks. We are positioned as a reference in the market as an efficient company. This is also going to be a priority. It means that it should be continuous. Every single year, we need a plan to keep on maintaining our efficiency and going beyond. We should never forget that the company has a commitment of investments in 2023, 4 times higher than what we used to have historically. BRL 8 billion CapEx. It's a company that used to have a CapEx of BRL 1 billion-BRL 2 billion historically. It means that we need structure, organization, processes, instruments, and generate the CapEx with excellence. All within the current context of dealing with qualified labor, of dealing with international disrupt measures, et cetera.
Associated with this, agenda of growth, there is also the need to look to our balance sheet and identify opportunities for capital recycling. I think you've mentioned that, Rosario, in your question. Try to identify positive spreads based on the return rate and the reinvestment required to be made into new projects of expansion. The group also has a well-structured agenda, all very well consolidated in ESG. Of course, our top management will keep on maintaining this focus. Being the leader in our industry and even having a better leadership role. Well, I think that this is something that has been in place for a while. Some assets are being perceived as optimized in our portfolio and within value creation. We are going to allocate the capital wherever there is higher return on investment. That's great.
Thank you all very much. I have a second question concerning the government issue. First, rebalancing. There were two claims in the past. One, the weak demand during COVID. I think this has been solved. The second one was an increase of raw material prices over what had been expected. It hadn't really found the right elements to schedule that. The new government's speaking about that in very general terms. In your opinion, do you think that this is a claim that will gain more momentum and the government will start seeing things differently and will prevent the industry from reaching balance? Secondly, re-tendering of SPVias. We've heard that in some cases, the government might try to rather than going into new bidding, they would try to negotiate the contract. Finally, some auctions in Paraná.
The state government has granted some to the federal government. The first auctions will be soon. There have been some changes to terms, to tariff and granting. Does it change the interest of CCR in these assets? Is there anything happening in terms of new auctions that change the concept and the interest? I'm sorry for taking such a long question.
Okay, Rosario. That's a very long list of questions, of course. Concerning balance, we still have some open claims, ourselves and other concessionaires in the state of São Paulo have probably been dealing with that. The compensation of COVID in the federal toll roads is fine. It has been rebalanced through the increase in tariffs. In São Paulo, our claim was brought to the area of the regulatory authorities. It's still under analysis.
There might still have something for the toll roads in São Paulo. In terms of airports, in the past three years, there were some pursuit for balancing. This year, we've really Strive further because in Belo Horizonte there has been some discussion. Maybe in the next quarter we can have some answers towards that. Finally, in Costa Rica, we are very much ahead, but we still haven't reached the new balance after COVID in our airport, but we hope that soon we can announce the fact there's no rebalance there. We're fully engaged in this initiative. Concerning the re-bidding of SPVs, we expected this asset to be submitted to a new bidding process in 2023. It was not possible. Ourselves and the granting authorities are still working together for it to happen.
It was extended up to March 25 as the maximum period, and we hope it to be solved much before that. You are absolutely right. There are some preliminary conversations going on where we have a review of these equations, and there might be an alternative path of reaching a balance, not only SPVs, but all the other assets in Brazil. It shows the willingness of the granting authorities to come up with solutions for them. There is nothing concrete yet, something that has to be observed closely. Some auctions in Paraná. As you all know, for many years we had a very important position in Paraná with RodoNorte.
We've always said that the 6 toll roads that will be submitted to bidding by the authorities are of our interest, part of our main portfolio and interesting portfolio in a region that has a very rich economy. 2 of the 6 toll roads are probably going to be submitted for bidding this year. We are looking closely for all opportunities. The final decision, whether we are going to engage and submit a proposal, will always depend on our final analysis. Analyzing risk over return of investments. Thank you. Very clear. Is there any claim of rebalancing and increasing CapEx during COVID? Is there any likelihood that's going to happen with the new government? Supplies. There is an industry discussion. It's being addressed by the whole industry. It has not stopped yet, but there is still no conclusion about it.
A fact that is of great help is that while there is no rebalancing the situation in terms of commodities and inflations is now in its opposite trajectory. It's very helpful. The industry as a whole has been trying to strike a balance of the situation during the pandemic, which was really very severe. Thank you.
The next question comes from Regis Cardoso of Credit Suisse.
Thank you, Waldo, Flávio, for your presentation. Success in your new position, Miguel. I have some questions and very much aligned about what we're saying about capital recycling. It seems that the infrastructure assets in Brazil are offered at very high tiers, so it makes more sense to think about the long term as an option more for procuring for purchasing than selling. Differently from airports abroad that are negotiated at higher multiples.
My question is really trying to tell you where do you exactly see the spread coming in periods where we have high interest rates and different spread structure? Concerning investments, where exactly will the capital be invested? In Paraná seem to have an interesting characteristic. It does not have the same upfront commitment of other grant. Of course, it always depends on prices. Ultimately, my question is What kind of assets would you like to have your capital allocated to? Where you have more CapEx distributed in time or where you have more disinvestment immediately in the beginning. Finally, still speaking about the government. With the new government, some industry agendas have been discussed in addition to the specific topics asked by Rogerio, but in the long strategic terms such as green bonds, funding lines, or tax reforms. Thank you.
Thank you, Regis. Your questions about capital recycling. Tier levels, making investments, Paraná, et cetera, these are all elements of the same question, I believe. I don't have a unique, a single answer. There is no recipe here, right? We analyze the cash flow, we analyze the asset and its characteristics, the investment profile of CapEx and how it's related with the obligations of CCR as a whole. Cash flow as part of our forecast to see really where it makes more sense to make these investments. That's part of your first question. We've always considered our return on investment tier and the tier of the project as a whole. We always prioritize those that have. That's something that happened in the past.
We select those that where the granting can be paid as part of funds and just part of the concession itself just for tax efficiency. There are a number of things that we analyze when considering projects, there is not specific recipe. We say we just do A, B, or C. In Paraná, toll roads have a demand profile which is very well known. Operational costs are very well known. The risks of assessment tend to be somewhat low. It all results from our investment project. CapEx is not only amount. We have a highly qualified team that considers the engineering of each of these projects to consider whether the CapEx was BRL 2 or 3 billion is a simple to execute CapEx or whether it's too complex that may lead to complications in terms of risk.
This is all taken as part of our projects, we analyze the fit with the cash structure of the company, the cost of investment, the total amount, the leverage of the group and the holding before making decisions whether we are going to make an investment. Concerning capital recycling, we are open. We don't exclude anything. International airports have been traded at superior multiples. If we see any proposal that makes sense, why not? We can maybe allocate this capital in a more intelligent fashion in our core market, which is Brazil. We have to look the portfolio and analyze our main core. We have already selected some assets for disinvestment, focusing our attention on our main competences and our main business. All the different companies that we have sold from the U.S. and other regions, they were non-core assets.
As part of our current portfolio, this has been sanitized but there are still some assets which are less core than the ones which are the main center. For example, Barcas in Rio de Janeiro, which would be a less strategic asset to us. We have a movement focused on our core and trying to identify some value generation opportunities that can open possibilities for profitable growth. If they are non-core but still with us, maybe we can, if it's an opportunity, invest again in it. Concerning your last question about the industry agenda, we are fully engaged in active conversations with all the different government institutions. We want to make sure that legal framework can get really more improved. Over the past 30 years, it has really improved, and we wanted to still move ahead.
This is a very important point. Secondly, I'm sure that contracts always have to be respected, abided by. We should always operate as is stated in the contracts, and this is a very important item in our agenda. We also want to help the granting authorities. Helping them, teaching them in what can be improved in future tenders so that we can get the right profile of return on investment on amounts to be invested according to the market where they are located, so that the return on investment is really related with the macroeconomic reality. Finally, the agenda of supplies after COVID. These are some aspects. Of course, there are others. It's a very broad agenda.
I have to say that the government entities are all very open, trying to come up with solutions to really improve our industry at large. Great. Thank you. Waldo, from a tax perspective, there is no topic of special highlight, right, as being more critical? We've been observing the tax reform. It's not only something specific to our industry. It impacts all economic activities. It is still under discussion, and there might be some changes. The potential impact, depending on the evolution, is over taxation of our revenues. Based on concession contracts in Brazil, changes of revenue taxation are always subject to the negotiation and rebalancing. We would like this rule to be part of any new tax reform or any new tax structure.
The next question is from Victor Mizusaki, Bradesco BBI.
Hello, good morning. Welcome, Miguel. I have two questions. One, concerning the decision of discontinuing NASP. Do you know exactly when this asset will be sold? Do you have anything, any appraisal in terms of valuation of NASP? Secondly, concerning Free Flow, what can you tell us about the Free Flow system in via SCP? We've seen the news about its implementation in São Paulo. How do you anticipate this possibility in terms of operational costs? Any benefits there?
Thank you, Victor, for your questions. Concerning NASP, we've already returned 30% of the land. We are going to maintain 70% of it with us. If you analyze our balance, it's no longer a operational asset. It is an asset for investment now, and we still haven't made a decision about what we are going to do with that.
There are many alternatives being considered. In the explanation of our earnings release, you can see the appraisal really of the land. Now, concerning Free Flow system, it is taking place in RioSP. It is an agreement that we made with the state government and the federal government. It's been working very well. We started testing in February, and the end of March started charging like that. 60% of the vehicles already have a tag. Very interesting progression. We are very optimistic. First operator in Brazil to have this technology, and we think that the concession authorities will start to incorporate that because it's a great benefit for the experience of our consumers. It improves also safety of toll roads, fewer people in situations of risk. For example, in toll stations, we tend to be somewhat vulnerable.
It is a technology that has come to stay. In existing contracts, where there are some rules from the past, that we would have to make adjustments to the contract dispositions to change that to Free Flow system. If there is a benefit to the concessionary, then it can be rebalanced. It's not something that would be done just to capture value in existing concessionaries. For the end consumer and for safety of our staff, it's a very beneficial element. Concerning Free Flow system, you've said 60% of the vehicles already have a tag and the other 40%. Anything that has attracted your attention or. Well, it is still within plan, and it's too early to say. We just started the system in the end of March. Until we get payments cleared, it will take some time.
As part of our agreement, because it's a period of test, we have sharing with the concessionary power. We start by running the risk of 40% in the 1st month, and this risk reduces throughout the time. As of the 18th month, we just hold 5% of the risk, and the remaining portion is always shared 50/50 with the granting authority. We've been working to build the awareness of the population around the region of the benefit of having the tag. This is something that has been evolving. This is why, after 2 months, we already have 60% of vehicles with a tag. We are also working together with the police to deal with the cases of default payment. Always focusing on reducing, as much as possible, default payment.
This is something that had been done in the past with toll roads. Nothing new really, it's something that we have always done. Let me complement here. Even not considering Free Flow system as a universal solution, the holding has been favoring favoring some automatic payment, and a very significant portion of our toll stations have automatic payment modalities. It has a number of operational benefits, safety issues, cost reduction. Regardless of having an expansion, great expansion of Free Flow system, as Waldo pointed out, we tend to have default levels lower than what was initially forecast. All the other automatic payment stations are constantly preference, and we want to use it towards excellence. I visited AutoBAn, our main asset, I visited the operation and our players in this concession area, and we discussed this topic.
The next question is by Lucas Barbosa from Santander.
Good morning. Great results. Thank you for taking my question. Miguel, I have a question about CapEx execution, one of the priorities in your agenda. On the one side, there is a decrease in price of commodities. IGPM had some negative values. On the other hand, we have an increasing price, higher margins. Considering the upcoming years, in which projects do you expect to have higher CapEx, and where do you expect to have lower CapEx than the estimates you used to have, considering in what you know today? Of course, we understand it's a very fluid situation. Thank you.
Well, based on what we have got in terms of concessions. In most cases, we had some predefined CapEx based on contracts. Between being granted the concession and takeover and start operating, we just go about contracting CapEx, of course. In general, in our business plans, we are aligned with what we had anticipated. Of course, we have to wait and see in two or three years' time with the situation of more supplies, equipment, et cetera. We thought that if there had been the number of tenders planned for last year, there would be scarcity of suppliers and equipment. As many auctions were postponed, it got somewhat easy there. This is a point of attention constantly to us. Where there is a review of the CapEx plan and an acceleration is on lines 8 and 9.
There we have to anticipate 590 million BRL that had been expected for the first 4 years to meet some needs that were brought to light. We've also anticipated the Revolvia Permanente. It's a, let's say, a readjustment and some anticipation, which was higher in the short run than we had imagined for the mid and long term. This is what we have observed so far. If I may build on. After COVID, we have to say that not the whole industry has really resumed its normal standards, its normal levels. We really have to analyze sourcing as a strategic activity, and we have to come up with long-term partnerships with different suppliers, with different operators that have really stable deliverables and pre-programmed deliverables. This is much better than opportunistic relations, right, which are just based on transactions.
In the units where we have most investments, most CapEx is still with the toll roads. The BRL 35 billion that we have of the remaining balance of contract obligations, of which 84% is concentrated on toll roads. We pay constant attention to really make win-win partnerships with our different suppliers, giving really visibility in CapEx strategy and execution. When the company makes this commitment, the area of sourcing is very strategic. It goes from transaction-based to be something much more, let's say, strategically based.
Thank you.
Very clear.
The next question comes from Bruno Amorim, Goldman Sachs.
Good morning. Thank you. I would like to wish good luck to Miguel. Flávia, Valdo, good to be here with you. I would like to hear from Miguel. I know that you've been here for a little time, thinking about value creation to shareholders. First, the improvement of the efficiency of current portfolio concerning regulatory agenda, reduction of cost of CapEx, and value creation through new projects. I would like to hear what you anticipate as competitive advantages of CCR. The process you normally gain have competitive bases. I think that in the end of the day, each player should have competitive advantage. Let's say, having better project of traffic or CapEx execution or operational efficiency, relationship with regulators. What is your preliminary assessment concerning that? Where do you see the competitive advantages that will allow CCR to keep on generating value in a very competitive market?
Thank you, Bruno. It goes without saying that I've just been here for a little time, but I can see a lot of innovation in the company to expand further in growth, profitable growth, with very clear criteria for capital allocation. We've been improving our capital allocation. We are not going to make investments which do not add value. To do that, we have to be very selective and have a risk over return relation which is appropriate to our profile. There are opportunities to gain value on both sides, growing with profitability. We are consolidating all the commitments that we have recently taken over. We've been growing the investments of four times more than what used to be in the past. It takes some digestion, so to speak, of all the commitments that have been made.
There are opportunities to add value and of course, always CapEx and cost. Someone has asked whether my coming to the group intended to bring something into energy. I said, no, the group is focused on our three modalities, it's not going to focus on energy. That's a clear example where we could capture value. The group, of course, spends a lot on energy, has BRL 100,000 spend in energy. If we had a reduction there, it would be great. That would help us capture value. Our concern, Waldo has exactly the same mindset of really being efficient. We want to identify those pockets of value using its cost structure, its operation, but there is always room for optimization. In terms of OpEx, this is what we have in mind.
We have recently implemented a matrix budget, which means efficacy and capture of value. I am going to carry on with this effort, whatever name it's given to. No restrictions whatsoever, so that we can go deeper into greater efficiency. CapEx side, exactly the same thing. Strategic sourcing, identifying partnership models that give us greater visibility, avoiding amendments in the end of contract, having well-controlled contingency and risk management, which is very precise. Mitigate the risk of CapEx overrun. I would like to share with you that vision of risk, of mitigating risk in our operation and focusing on our performance. Just from a conceptual part, which is what I have now, we want to find value in all these dimensions.
Growth, which has to be profitable, cost management, excellence management of our CapEx, agile, simple execution, controlled risk, healthy balance, giving stability to our operations with limited risk. CCR has been doing that throughout the years. Great. Thank you. Where it can receive a competitive advantage of the group in addition to scale that give the effect to other players of. Beyond the quality of our assets, we are very knowledgeable about all the areas where we work. In some, we have great historical experience, but we have been developing our competencies in all our modalities of operation. Posing us as experts. This is something that the group has been doing very professionally. Very detailed study of the opportunities in the growth pipeline.
We analyze everything that is in the radar of infrastructure. We study these projects in a very detailed fashion, in a lot of detail. When the time comes, we know about risks, we know about assets, we know about operations. Just by doing that, we have a competitive advantage.
The next question comes from Andressa Varotto, UBS.
Hello, good afternoon. Thank you for taking my question. I wish you success , Miguel. How are you seeing firepower in that pipeline of opportunities, especially of toll roads? Does the company expect a follow-on potential to deal with this window of opportunities? As Miguel has pointed out, we are still focused on our projects, but seeing all opportunities in the toll roads, urban mobility and airports, some are more evident. We are considering all of them very carefully. We have that potential, very relevant potential to obtain more businesses, because once you gain a bidding process, there are still months until you take over the operation, then CapEx coming time.
Then we have cash generation and also the investments made. We are very comfortable that we can take new assets into the portfolio in a very well-structured fashion, very systematized and respecting our relationship in the area. To follow on, this is not part of our agenda. We are constantly analyzing the alternatives for capital allocation and capital needs according to what's brought to us. This is always part of our agenda. There is no plan in place for follow on. Great. Thank you.
Let me remind you that to ask a question, please raise your hand. Please wait while we pull for more questions. If there are no further questions, the Q&A session is now closed. I would like now to hand it over to Miguel Setas for his closing remarks. Thank you.
Thank you, operator. I'll be very brief. I think it's been a very long earnings conference call today. I would like to thank all of you for your welcoming remarks. Thank Waldo and Flávia for the support they've provided to me. I'd like to make the commitment with all of you that I'm going to follow along with this team in our one-to-one interactions and on-site interactions. I think we've talked extensively about strategy. My coming into this position is not going to cause any rupture in the journey of the company, which has been very successful.
I'm here to carry on with this very successful journey. The board of director wants us to create value to shareholders in all the different directions that we've pointed to you. Growth has to be profitable with agile organization, efficient company in dealing with costs. Excellent in CapEx execution with disciplined capital allocation. This is what the market has to understand. CCR is not going to invest in projects which are not creating value. We need financial discipline, and that has been Waldo's work. We want to have healthy balance that can keep us growing with ambition. Of course, we need robust governance. We have a very stabilized shareholder group. Our shareholders have long-term vision for the company, and they are going to give us the right conditions for the top management to work very strategically.
We have very solid, reinforced governance, thanks to the quality of all our team members. Controlled risk policy. We have internal audit, compliance, internal controls, risk management. This is all part of the routine management of the company. In the end of the day, we want to give attractive return on investment to our shareholders. Shared value with the society according to our ESG agenda, with all stakeholders. Sharing value, which is expected of modern companies that operate with excellent with ESG. With that, I close. If Waldo does not want to say anything else. Thank you all very much. Hope to see you soon. Thank you.
Thank you. The call of CCR is finished now. If you have any questions, send them to the IR team, ri.grupoccr.com.br. Thank you all very much for your participation. Have a great day.