Infrastructure Businesses in Brazil
The Brazilian interim President, Mr. Michel Temer, published the provisional measure no. 727/2016, creating the Investments Partnerships Program (PPI, in Portuguese) last Thursday, May 12th. The program seeks to expand and strengthen the interaction between the State and private parties by means of partnership agreements for the execution of infrastructure projects and other privatization measures.
The mentioned "partnership agreements" encompasses agreements of concession, PPP, permit, lease, right in rem and other public-private businesses.
The provisional measure allows the Administration to create her own programs to improve the public-private relationships, including eliminating bureaucratic barriers to the free organization of the corporate activity.
It also allows the opening of a preliminary procedure for studies on the intended projects (similar to calls for expression of interest on PPPs). In this case, not only are the private participants impeded to participate in the following bid, but also any reimbursement for the studies is prohibited, as a rule.
Mr. Temer's objective is to bring more legal certainty to the private parties and attract investments to big infrastructure projects in Brazil.
It is expected for some of the infrastructure projects that were not opened last year to be released this year, such as:
The Brazilian National Agency for Civil Aviation opened a public hearing for the airport concessions on May 6th. It is estimated that the minimal grant values for these new concessions sum up to BRL 4,111 billion.
For more information on the infrastructure projects in Brazil or the bids scheduled for 2016, Demarest's infrastructure team will be at your entire disposal.