According to Felipe Montoro Jens, several Northeastern stated have taken into investing in private initiatives by assets’ transfer, through Public-Private Partnerships (PPPs) concessions. This is a way of evading the federal transfers restrictions and fiscal accounts tightening without interfering with the investments.
One such example is the Light Rail Vehicle Project (VLT) of the Bahian government. The 19 miles railway line with 21 stops is aimed to substitute the operating surbabian train, with 1.5 million benefiting from this project.
Another is the Piauí government which has 24 concession projects and PPPs, as made aware to Viviane Moura the Concessions and Partnerships superintendent. Their largest concession is going to expand the sewage network to cover more areas in Teresina, from the current 24% to 80%, states Felipe Montoro Jens. The state launched internet connection improvement project which their first PPP in August 2017 which is under the responsibility of the private partner. The fiber optic and 1500 access points will be installed from the coast to southern end. 2.1 million Piauíans will benefit from the project.
Maranhão government is also aiming to have a prisons construction PPP. The four prisons are likely to open two thousand places and this operation is expected to start in 2019 June, as Felipe states.
In Pernambuco state, National Bank for Economic and Social Development (BNDES) has incorporated Pernambucana Sanitation Company (COMPESA) in an initiative aimed to boost the engagement of private companies in the sector of sanitation. To make this achievable BNDES has even outsourced consultancies to examine the best model that will draw investors in 15 states.
COMPESA wants the PPPs signed by the government expanded so that more models can be embraced since there are available resources that can complement the partnership from Inter-American Bank and World Bank, says Robert Travas COMPESA’s president.
Making the production and distribution systems more efficient in the Interior is also something the Pernambuco government is interested in.