Success Shown by Infrastructure Auction Schedule

Beginning in September of 2017, the Investment Partnership Program (PPI) is expected to hold 18 infrastructure auctions by the end of the year. This schedule, while very engaged, is set in stone according to the secretary of the project coordination, Tarcisio Gomes de Freitas. The high expectations were brought on by a change in the presidency of the Republic. On August 31st of 2016 Michel Temer assumed the role of presidency, whom Freitas believes is “pro-business”. An expert on Infrastructure Projects, Felipe Montoro Jens, reports that in his first year of holding the presidential office 44 infrastructure auctions were held by PPI that accounted for approximately $23 billion earned in investments. An example of this great change is the auction on transmission lines that took place in April, which, according to Jens, was the largest in history.

In order for this positive streak to continue the country itself must be considered. Brazil has created a challenge for this program because PPI is going to have to work on altering the infrastructure sector to expand and become more modern, but they have a plan in mind. PPI intends to interest investors by selecting projects that are successful and targeted towards the private sector. This line of action was brought forth by learning from past mistakes that originated from the Public-Private Partnerships (PPP). Due to the way this program was designed, the State intervened too much causing an imbalance of project risk.

This insight from the past, along with the new “pro-business” president, creates a seemingly successful future for PPI. The last year is only the start of what is to come, which can be seen with the 18 infrastructure auctions being held over the course of only 4 months. This bold schedule is appearing to be a estimable indication of how PPI will be handled from now on.

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