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Brazilian Federal Government includes 57 new projects in the Investment Partnership Program

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8/30/2017 12:00 AM Demarest News

Brazilian Federal Government includes 57 new projects  in the Investment Partnership Program

The Council of the Investments Partnership Program (Programa de Parcerias de Investimentos - PPI)  included 57 new projects in its pipeline  in the meeting held on Wednesday, August 23, 2017.

Projects in the airports, highways, ports and energy sectors were included in the privatization pipeline, as well as other public ventures such as Lotex and the Brazilian Mint House (Casa da Moeda). The Federal Government intends to raise BRL 44 billion with the new inclusions.

The projects in the airport sector include the privatization of the Congonhas airport, in São Paulo, with an estimated minimal value of BRL 5.6 billion, and the sale of Infraero's shareholding of the airports of Guarulhos (State of São Paulo), Confins (State of Minas Gerais), Brasília and Galeão (State of Rio de Janeiro).

The government is also proposing the concession of airports in cities in the Northeast (Aracaju, Campina Grande, Juazeiro do Norte, João Pessoa, Maceió and Recife), Southeast (Macaé and Vitória) and Mato Grosso (Alta Floresta, Barra do Garças, Cuiabá, Rondonópolis and Sinop).

There are news in the port sector as well, with the intended privatization of port terminals in Miramar, Belém, Vila do Conde, Paranaguá and Vitória and the first privatization of a port authority: Companhia Docas do Espírito Santo (Codesa).

The bidding procedures are initially scheduled for the 3rd quarter of 2018. There is a certain degree of skepticism with regard to the ability of the government to deliver all the projects included in the PPI. This is due to the heavy 2018 electoral agenda (state and federal elections are to be held). However, we understand that the chances of delivery of the program are good for a series of very peculiar facts, among which (a) the ability of the Federal Government to deliver the majority of the projects without the involvement of Congress (very few new laws are required); and (b) the need for the Government to resort to non-recurrent sources of income as a result of the delay in the approval of structural reforms (social security, mainly) and its political inability to approve new increases of taxes.

Below there is a list of the main projects included in the PPI:

1. Airports
a. Congonhas (SP)
b. Macaé (RJ) and Vitória (ES)
c. Aracaju (SE), Campina Grande (PB), Juazeiro do Norte (CE), João Pessoa (PB), Maceió (AL) and Recife (PE)
d. Alta Floresta, Barra do Garças, Cuiabá, Rondonópolis and Sinop (MT)
e. Sale of Infraero’s shareholding of 49% of the airports of Guarulhos (SP), Confins (MG), Brasília (DF) and Galeão (RJ)
2. Ports
a. Privatization of Companhia Docas do Espírito Santo (Codesa)
b. 3 LPG terminals in Miramar (PA)
c. 5 liquid bulk terminals in Belém (PA)
d. 1 liquid bulk terminal in Vila do Conde (PA)
e. 3 grain terminals in Paranaguá (PR)
f. 1 liquid bulk terminal in Vitória (ES)
g. Early prorogation of the concession of the fertilizer terminal in Itaqui (MA)
h. Authorization for the increase of capacity of Agrovia do Nordeste terminal in Suape (PE)
3. Highways
a. BR-153 between Anápolis (GO) and Palmas (TO)
b. BR-364 between Comodoro (MT) and Vilhena (RO)
4. Energy
a. Jaguará hydroelectric power plant
b. 11 lots of transmission lines
c. 3rd round of the pre-salt under shared regime
d. 4th round of the pre-salt under shared regime
e. 15th round of oil and gas exploration and production blocks
f. 5th round of bids from mature fields
5. Other
a. A public private partnership regarding the integrated communications network of the aeronautics command (COMAER - Comando da Aeronáutica); 
b. Privatization of the Mint House (Casa da Moeda)
c. Lotex
d. The company of Silos and Warehouses of the State of Minas Gerais.
e. Ceasa Minas

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