Government Projects Auctioned to Private Business

In August, look for the announced auction scheduled by the federal government, which will offer up options for some government contracts to private companies.

57 projects are slated to be offered to the private sector. The projects are worth a projected 44 billion dollars. 22 sectors reported by the Program of Partnerships and Investments (PPI) indicate the contracts are for those who specialize in infrastructure.

Of the 22 projects, it is reported that more than fifty-percent will be scheduled to begin after the second half of 2018. For example, Congonhas airport in Sao Paulo and the Galeao in Rio de Janeiro, and Confis in Belo Horizonte will all be expected later in the year. Felipe Montoro Jens says the public company consortiums that have the concessions of these terminals hold 49% interest.

Jens indicates that the BR-153, between Anápolis (GO) and Aliança (TO) was originally with the Galvão Group who has had their concession revoked. This project is on the list of concessions held by the federal government for auction.

A representative of the Ministry of Transport states that bidding is scheduled for the last three months of Michel Temer’s government. Within these auctions, Felipe Montoro Jens says that the BR-365 will be included in the private auction initiative. The auction for this highway will commence at the end of 2018. The stretch of highway included runs from Comodoro (MT) to Porto Velho (RO, an almost 800 km distance.

Not only are highways and airports being open for the public sector to bid, but port terminals of Belém (PA), Vila do Conde (PA), Paranaguá (PR) and Vitória (ES) will also take place.

The government-owned companies, Mint, Ceasaminas, Casemg, and Docks of Espirito Santo will be privatized, but there is no definite answer as to how the government will go about this process. Their auctions are scheduled for the end of 2018. Felipe Montoro Jens is the specialist in Infrastructure projects who will spearhead the initiative for this auction.

The Investment Partnerships Program (PPI) was created at the federal level. Their intention is to increase and improve relations between State and private initiatives in order to help generate improved employment rates for the citizens of Brazil. They expect to utilize both investments in infrastructure and project privatization as their means to this end.

PPI is striving to guarantee the public infrastructure expansions with appropriate and quality tariffs. They also intend to ensure that there is a stable and leagal security of all projects with a promise of only minimal intervention in both the business and finances.

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