Felipe Montoro Jens details PPP implementation in Brazil

December 2004 marks the date when the Brazilian Federal Law was passed (Federal Law 11,079 / 04), which details general rules and guideline that govern how public private partnership (PPP) contracting, and project assessment between public and private sectors are managed. Public Private Partnerships are a good way to allow collaboration between public and private sectors to leverage their respective advantages.

Pubic Private Partnerships are a good way to cut cost, due to the fact the private sector is governed by profits, which traditionally private sector players implement the most economically efficient solutions as possible. Brazil, the largest economy in Latin America has recently clawed its way out of what is referred to as the “economic crisis” it has been suffering for quite some time now. Learn more about Felipe Montoro Jens at terra.com

Today Brazil has more public private partnerships than it did 10 years ago, but it’s still not enough to really assist in creating a more optimal economic environment. Felipe Montoro Jens reported some issues with public private partnerships are the taxation of the payments made by the private players are taxed, which balloons the overall cost. In addition there has been payments not being received has been raised by the private sector.

There are success stories for the potential of implementing PPP. In Belo Horizonte has a implemented a 20 year project to upgrade the lighting in the park from the luminary lights to LED a total of 182,000. Belo Horizonte will make history, by being the first capital to implement a project of this magnitude to be entirely implemented using a public private partnership.

The Brazilian government created the Program of Partnerships and Investments (PPI), to create relationships with the public and private players to explore synergies on creating joint solutions. There is a 57 project and 22 sector stimulus (R$44 billion investment), being governed by the PPI implement PPP. Visit: http://www.negociosemfoco.com/newsdino/?releaseid=141832

 

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