The government plans to have 18 infrastructure auctions in the second half of 2017, and this is in line with what the Investment Partnership Program Secretary, Gomes de Freitas said. The secretary had given assurance that the schedule would not change irrespective of the political discussions that the Brazilian government was involved in
Freitas said that the 18 auctions would start in September and they will work in parallel with Congress discussions. Felipe Montoro Jens, the PPI infrastructure project expert says the program is open to participation by new players in the concessions.
Gomes de Freitas points out a challenge in lower productivity in Brazil, calling out for infrastructure sector to be expanded and modernised. He further says there is a need to attract more investors and reduce unemployment that has become so rampant. Gomes added that enhancing governance on projects is a significant gain for the Investment Partnership Program. He says that they have been able to create a hub and articulate with ministries and are targeting select projects that are successful and will attract the private sector.
One of the primary objectives for the PPI is correcting a myriad of mistakes realised in the area of Public-Private Partnerships. This was caused by the state intervention which culminated to an imbalance of project risk. In an interview conducted by the EXAME editorial director seeking to know if previous errors in concessions negatively impacted foreign investors decision, Freitas pointed out the government had done away with anti-business line and embraced a pro-business line.
During the first year of Michel Temer’s presidency, PPI had managed to hold 44 infrastructure auctions. This translated to business investments that amounted to approximately R $23 billion. Michel Temer rose to Brazil’s presidency on 31st August 2016.