Insight of Brazilian Government Policy on Infrastructure Auction

The Brazilian government is planning to have at least eighteen infrastructures auctions for the second half of 2017 starting from September. This announcement was made by Tarcisio Gomes de Freitas, the Investment Partnership Program (PPI) coordination secretary. According to Felipe Montoro Jens, an expert in infrastructure projects, the government had assured in June there will be modification regardless of the on-going discussions in the Congress. Through the PPI, the government was encouraging participation of new partners in the concession.

Mr. Tarcisio Freitas emphasized on Brazil economy increasing its productivity. However, a challenge was being faced in modernization and expansion of infrastructure in the country. Therefore, there was need of embracing the concession to attract investors and create more employment opportunities.

Freitas highlighted the transmission line auction done in April this year that attracted the private sector and was so successful. Also, he did state that the government objective was to correct mistakes done in the past. There was over-interference of PPI programmes by the state creating imbalance of project risk.

Felipe Montoro Jens recalled that in June, the secretary had assured that the government had ceased over-intervention of PPI projects. During an interview with EXAME Magazine, the editorial director wanted to know if there were marks left on foreign investors’ decision due to past government errors. Tarcisio Freitas expressed investor confidence in government commitment to staying clear the concessions. He gave an example where an international consortium was present in the airport concession auction held in March.

The government of the day led by Michel Temer has adopted the pro-business line. Felipe Jens noted that from 31st August 2016 when Michel Temer assumed the presidency, there were 44 auctions held by PPI in the line of infrastructure. Therefore, around R $ 23 billion worth of investment has been captured by this move.

1 thought on “Insight of Brazilian Government Policy on Infrastructure Auction”

  1. For the people out their that have eyes for investment, this might be a very important news for them and I think that they can get things on a cheap. Also with can provide those interested with what they should look out for in the auction that is to be carried out in the second quarter of the year. I think that some of the properties would be gotten at a very cheap price.

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