Felipe Montoro Jens Reports On Business in Brazil

The Brazilian government held a meeting with the Inter-American Development Bank (IDB) in Mendoza city of Argentina trying to seek financing for their infrastructure projects. The then Minister for Planning, Development, and Management, DyogoOliveria was put on the spot to explain the Public-Private Partnership (PPP) contract which has led to an increase in private investments in infrastructure projects. This agreement has seen private firms such as the FM Rodrigues Consortium receive deals worth billions of dollars to do a project on modern public lighting, the minister on his defense argued that this was a mechanism they have used to guarantee their investments through leveraging private companies. He says that involvement of private companies improves the chances of managing the risk involved in the execution of the projects and ensuring quality work. The minister assured the IDB that the selection criteria for picking these companies are in line with the set guidelines and actions of the multilateral agencies working with Brazil.

The news portal of the Ministry of Planning, Development, and Management released a statement to support the minister’s views, and they have shown that over the past decade there have been about 1000 projects under the Public-Private Partnerships (PPP). These projects are valued at $360 billion, although according to the statistics carried out by the Ministry of Planning assessment, many of the projects undertaken are unable to mobilize private capital. Another report indicated that IDB loans to Brazil totaled to $12.9 billion which is a drop in 20% compared to the previous year.

Dyogo also stressed the importance of inviting investments from other countries and with the support of IDB move to make an industrial revolution through the development of modern infrastructure, the building of roads, proper sanitation and providing water for its citizens. Argentina’s minister for Finance Louis Caputo supported this idea of working with foreign partners to take advantage of dynamic market differences between nations.

The IDB president views were that the countries first should establish a connected infrastructure between them to achieve the necessary development he also made the leaders aware of the fact that IDB has toughened its policies on gender equality and environmental sustainability on projects implementation.

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