The Brazilian government has a plan to carry out approximately eighteen infrastructure auctions by the end of the year. The project is expected to take effect in the more significant part of the second half of 2017, as stipulated by the coordination secretary in charge of the project. According to Felipe’s June report on the issue, it is clear that there are no intentions to modify the auction plan despite the various political atmospheres in the Brazilian government.
The Infrastructure auction project is aimed at attracting the contributions of new members in the concessions. Plans to stop the project by the private sector industry players were also dismissed. Provocations from the private sector indicated that major projects in Brazil were set for a downfall after Lava Jato denounced great contractors.
In his report, Felipe Montoro Jens also recalls that the most important transaction in history was the transmission lines auction that took place earlier in April. According to Freitas, Secretary to the Investments Partnership Program stressed that the government is striving to offer projects that greatly attract the interests of the private sector.
Moreover, Felipe also exposed that the primary goal of the Investment Partnership Program is to rectify a series of past injustices in partnerships between the public and private sectors. The over-involvement by the state in projects caused a significant imbalance to the risks associated with the management of projects. It is a story the Investment Partnership Program aims at changing for the success of entire Brazil.
Nevertheless, Felipe strongly believes that investors have more confidence in government as compared to the past. The move by the government to engage in a pro-business line rather than the previous anti-business line is clear evidence. The step is a success as a result of the efforts of the PPI project coordination secretary and Timer, the current President of the Brazil Republic. In the first year of Timer’s administration, PPI managed 44 successful infrastructure auctions, adding up to an investment of about R $23 Billion.