Private sector partnerships will improve the Brazilian economy and services

Private sector partnerships will improve the Brazilian economy and services

Chamber Articles Category: Economic News Post Date: 10/12/17 Source: BrazilGovNews By: BrazilGovNews
Article Content

Improving the quality of services, creating jobs and helping the economy grow more sustainably are the core goals of the government's efforts to award part of the operation and management of some of the country's infrastructure to the private sector. And the efforts are already paying off: investors have shown great interest in the 57 projects included in the Investment Partnerships Programme (PPI).

A practical example of the attractiveness of these assets and how the PPI can leverage the Brazilian economy (especially after two years of recession) are the recent infrastructure auctions. The ones held for the electricity and oil & gas sectors alone have raised almost R$ 16 billion in signing bonuses.

These funds, which go directly to the National Treasury, will help the Brazilian government rebalance public accounts and eliminate the need to take more stringent measures, such as raising taxes.

In the assessment of José Carlos Medaglia, CEO of the State Planning and Logistics Company (EPL) - the public agency that produces the studies that guide the concession projects - partnerships with the private sector are an important tool to foster development at a time when the government cannot afford the costs of high investments in infrastructure.

“Bridging Brazil’s infrastructure gap requires measures that give us effective and faster responses. In this context - and also taking into account some budgetary difficulties of the government - I think it is almost a consensus that concessions through public-private partnerships are a path to be followed," he said. Read Full Article