Recap about Brazilian business

Felipe Montoro Jens Reports How Some government projects will be passed to the private sector

Felipe Montoro Jens, an investment specialist reports that the federal government will be granting 57 projects to the private sector. They are estimated to involve an investment of $44 billion in 22 sectors listed through the programme of Partnership and Investment (PPI).

Half of these projects are slated for August 2018. The second part of the projects are slated for next year. They include: sale of airports in Guarulhos São Paulo, Brasilia, Galeão Rio de Janeiro, and Confis Belo Horizonte. The auction of Congonhas airport in São Paulo is also in the list of projects slated for next year. Felipe Montoro Jens reported that Public companies have 49% interest of the projects that have concession of most terminals.

Surprisingly, BR-153 whose concession was previously revoked of the Galvao group is on the list of concessions of the federal government, Felipe Montoro Jens says. The ministry of transport pointed out that the bidding is slated to happen the last three months before the end of Michel Temer’s tenure as the head of government. According to Felipe Montoro Jens, the stretch of BR 364 which is about 800 kilometres is another highway project that is scheduled to be granted to private entities. Nevertheless, projects such as the auction for port terminals concessions of Vila do Conde, Belem, and Paranaguá re said to remain.

According to infrastructure specialist Felipe Montoro Jens, during the time of concession announcements, the federal government did not provide a clear explanation on how they plan to sell companies such as Ceasaminas and Mint. However, the government the privatization of the named state owned companies by the end of 2018.

The Program of partnership and investment was formed by the federal government and its main objective was to strengthen and broaden the relationship between the state and private entities so as to generate more Jobs in Brazil.

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