Felipe Montoro Jens Discusses Brazilian Concessions Projects

Due in part to federal restrictions, many Northeastern states in Brazil are entering into Public-Private Partnerships (PPPs), transfering projects to private ownership, according to Felipe Montoro Jens, an expert on infrastructure projects. Among these include the Light Rail Vehicle Project in Bahia. Upon completion, it will increase efficiency, replacing the current suburban train, helping 1.5 million people.

The state of Piauí has 24 concessions currently. As pointed out by Felipe Montoro Jens, the expected results of these projects are positive. For example, the state’s largest concession will increase coverage of the sewage network from 24% to 80%. Additionally, Piauí’s first PPP will increase internet connection, aiding 2.1 million citizens.

In the state of Maranhão, Felipe Montoro Jens notes that expected in June 2019, 4 prisons will open as the result of a Public-Private Partnership. This project could help open more than 2000 places.

In Pernambuco, private sector participation is expected to increase as the National Bank for Economic and Social Development (BNDES) has involved Pernambucana Sanitation Company (COMPESA) in its initiative. According to Felipe Montoro Jens, COMPESA are not the only ones the BNDES have sought out involving in their initiative, as they are pursuing partnerships in 15 states.

COMPESA is not only seeking to expand sewage coverage, but also have PPPs in other fields, considering they have resources from the World Bank and the Inter-American Bank. They also wish to improve the state of the interior in Pernambuco.

Public-Private Partnerships are becoming more and more prevalent. This is evidenced by the fact that the Northeast states including Bahia, Pernambuco, Alagoas, Ceará, Rio Grande do Norte and Maranhão have already signed 23 PPP contracts worth 28 billion dollars. Regionally, this is second only to the Southern states, that have 60 contracts.

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