The Brazilian government has been looking to public private partnerships as solution to help control the federal government deficit. The Federal Law 11,079 / 04 was enacted in December 2004, and it outlines the basic rules that govern the implementation for public private partnerships in Brazil. Public private partnerships have the potential of reducing and controlling the deficit, completing projects that are traditional expensive, and generally creating opportunities to leverage their respective advantages. Public sectors or the federal government tend to have advantaged regarding strict standards and regulations.
Private sectors tend to have access to better technology, and a culture of completing projects in a timely manner. Felipe Montoro Jens, reports despite these advantages there are hurdles that prevent the acceleration of more public private partnerships in the country. According to Felipe Montoro Jens 30% to 40% of all the payments made towards projects by the private sector are taxed back to the government, which balloons the costs of projects. Visit consultasocio.com to learn more
The Program of Partnerships and Investments (PPI) is an agency, who focuses on creating public private partnerships by forging relationships between the public and private sectors. Felipe Montoro Jens reports the Program of Partnerships and Investments is currently implementing an R $ 44 billion investment by the government in form of 57 projects and 22 sectors. Felipe Montoro Jens listed 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) airports that are no longer going to be under the control of Infraero. Infraero is a government operated company that controls all the major airports throughout Brazil. Felipe Montoro Jens also listed Belem (PA), Vila do Conde (PA), Paranagua (PR) and Victoria (ES) ports that are going to sold to the private sector.