Brazil: PPI second phase

Author: | Published: 27 Mar 2017
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On March 7 2017, the Brazilian federal government released the second phase of the Investment Partnership Programme (Programa de Parceria de Investimentos or PPI) – a governmental programme designed to foster infrastructure by expanding and strengthening the relationship between the government and the private sector.

The investments of the second phase add up to R$45 billion ($14 billion) and encompass 55 projects in various sectors. The projects include tenders for new transmission lines and new port terminals, the early extension of port leases, a new toll road concession, studies for rebidding of toll road concessions approaching termination, the privatisation of state-owned sanitation companies and the extension of existing railways concessions.

Phase II of the PPI complements initiatives announced in September 2016 for phase I, which provided for investments in an expected amount of R$24 billion for energy, sanitation, airport, toll road, oil and gas, railway and port projects. The energy utility of the state of Goiás was privatised in phase I of the PPI. In addition, auctions for four airport concessions (Florianópolis/SC, Fortaleza/CE, Salvador/BA and Porto Alegre/RS) and for port terminals in Pará were scheduled to occur in March.

The Brazilian development bank, BNDES, will contribute to defining the privatisation model for state-owned sanitation companies in those states that adhered to the PPI. Towards this end, BNDES launched a public call to pre-qualify advisors to assist in the studies. The notices to bid for the states of Amapá, Alagoas, Maranhão, Pará, Pernambuco and Sergipe have already been published, and the notices for the states of Paraíba, Rio Grande do Norte, Acre, Ceará and Santa Catarina are expected to be published in the next few months. BNDES has also indicated it will cooperate with city authorities that express interest in studies for implementing public lighting projects. So far, the cities of Porto Alegre/RS, and Teresina/PI, have expressed an interest in studying solutions for public lighting.

The announcement of a larger number of projects to be awarded in years to come contains the allowance for long-term planning and increased predictability in the infrastructure sector.

The Brazilian federal government is confident that the development and strengthening of the infrastructure sector will leverage growth, create jobs and foster the recovery of the nation's economy.

  Karin Yamauti Hatanaka and
José Guilherme Malheiro