It was December 2004, the Federal Law 11,079 / 04 was passes. Federal Law 11,079 / 04 outlines rules and regulations for public private partnership, how and when they are used, and how and who gets paid. The Brazil recognizes public private partnership, as good tool to reduce deficits and get expensive projects done. Public private partnerships are very effective in helping governments leverage the strengths of the public sectors, and the private sectors. Felipe Montoro Jens has learned about R $ 44 billion investment to be implemented over 57 projects, and expanding to include 22 sectors, in an effort to create more public private partnership projects in the country. Program of Partnerships and Investments (PPI), is a government agency who is responsible for creating good relationships between the public and private sectors, to encourage more public private partnerships. Visit infomoney.com to learn more.
The government ran and operated company Infraero is currently responsible for all the major airports in Brazil. Infraero, also own 49% of the stocks of each of the companies under its jurisdiction. Infraero being a government company, has a huge financial burden running so many airports. The use of a public private partnership in the case of Infraero would releave some of the financial burden on the government and would help cut the deficit, which contributes to the overall conditions of the economic climate. Felipe Montoro Jens has learned Brasilia, Confis (Belo Horizinte), Galeao (Rio de Janeiro), Guarulhos (Sao Paulo), Maceio (AL), Joao Pessoa (PB), Aracaju (SE), Juazeiro do Norte (CE), Campina (PB), Recife (PE), Varzea Grande (MT), Rondonopolis (MT), Alta Floresta (MT), Barra do Garcas (MT), Victoria (ES) and Macae (RJ) are all no longer going to be part of Infraero’s airports. These airports are scheduled to auctioned to the private sectors during the last three months of the year according to Felipe Montoro Jens.
Brazil has been suffering the economic effects that have plagued the country for over a decade now. The government has been implementing various institutions and initiatives in an effort to bring an end to the economic turmoil. In 2004, Federal Law 11,079 / 04 was passed to outline and define clearly the rules that define how public-private-partnerships are to be implemented. Brazil has leveraged the economic power of using public-private-partnerships to tackle infrastructure in traditionally expensive projects. With the laws in place that clearly identifies how to utilize public-private-partnerships, the Brazilian government began to invest in more public, private partnerships.
Felipe Montoro Jens reported earlier this year an R$44 billion investment to create public-private-partnerships that would be implementing 57 infrastructure projects in 22 sectors. Most of the 57 projects where scheduled to be implemented at the end of 2018. Felipe reported the R$44 billion investment was to be managed by the Program of Partnerships and Investments (PPI).
This year at the annual Inter-American Development meeting (IDB) meeting in Argentina in March 24th Felipe reported on the concerns of many of the governors in attendance. Dyogo Oliveria, the Minister of Planning was also at the IDB meeting and he had concerns about the implementation of many infrastructure projects. The National Confederation of Industry (CNI) is a government agency that was founded in 1938 with the sole purpose of ensuring the economic possibility of the Brazilian. At the request of the CNI, Dyogo Oliveria provided economic data from 2017, which was used to create the “Great Works Stopped: How to face the problem?”
The report found 2796 projects that were planned to be implemented have not been implemented or has stopped in the middle of production. These are 2 projects costs the country R$10.7billion. The CNI has implemented a detailed plan that identifies the cause of the projects not being executed and a plan to begin and sustain production.