Felipe Montoro Jens reports Brazil investments in PPP implementation

Felipe Montoro Jens reports on the Brazilian federal government efforts in implementing public private partnerships to help the economic climate of the country. Brazil, Latin America’s largest economy understands the potential of public private partnerships as a tool to complete heavy resources dependent projects, while creating jobs and keeping the economy in an optimal state. December 2004 Federal Law 11, 079 / 04 was passed, which outlines the rules that rules and guidelines pertaining to public private partnerships and how they are implemented. Felipe Montoro Jens reports the Brazil government is looking at public private partnerships as an opportunity to lower deficits. More info about Felipe Montoro Jens, here.

Currently there are more public private partnerships in Brazil than it was a decade ago, but it still not enough to help the deficit and the overall economy, says Mr. Montoro Jens. Felipe Montoro Jens went on to highlight issues of over taxation as hurdles, because 30%-40% of the payments made from the private sector ends up being an added tax to the government. In addition to the tax issue, there is the issue of the private enterprise not getting paid in a timely manner or at all.

Felipe Montoro Jens has reported the successful public private partnership Belo Horizonte. Belo Horizonte, in the state of Minas Gerais has successfully began a public private partnership, projected to run for 20 years. The PPP is upgrading the old luminary lighting with LED lights. It is projected by 2020 that all public lighting will have been upgraded to accounting for 182,000 lights in total. Following the success of the Belo Horizonte’s public private partnership, Sao Paulo the largest city in the country other cities are looking to follow their blueprint. According to Felipe Montoro Jens, the Brazilian government is investing R $ 44 billion in 52 projects, in an effort increase public private partnerships in the country.

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