Felipe Montoro Jens Expects to Carry Out 18 Infrastructure Auctions by the End of 2017

According to infrastructure projects experts Felipe Montoro Jens, PPI would hold 18 infrastructure auctions by the end of 2017. He added that there was not going to be any modification to the schedule.

According to him, the auctions, which began in September of 2017, would go on even as discussions were ongoing in Congress. He also added that the PPI was open to the private sector. This was especially so after major contractors were hit by Lava Jot’s pronouncement that major projects would shut down.

Challenges Faced

For productivity to grow in Brazil, there needs to be a modernization of the infrastructure sector. The secretary of the PPI said that there was a need to build governance on projects. After all, he added the country could not afford to be hostage to its fiscal budget.

He said that the PPI had created a hub with various ministries, which would select projects, which were attractive to the private sector. Felipe recalled an auction, which took place in April involving transmission lines. According to him, that was the largest transaction to have taken place in Brazil thus far.

The Aim

The aim of the PPI is to correct mistakes made by the government in private-public partnerships in the past. These mistakes usually occurred because of the State intervening too much in these projects. The result was usually an imbalance in project risk.

According to Felipe Montoro Jens, when the secretary was asked whether past mistakes by the government would affect decisions of foreign investors, the secretary gave a clear answer. He said that it was now clear to investors that the government would no longer interfere in the activities of private investors.

According to Felipe, the PPI had been doing quite well. After Michel Temer became president, the PPI held 44 auctions and was able to gain R $ 23 billion in investments.

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