Technicians in charge of Brazil's upcoming infrastructure concessions program, Crescer, are advising interim president Michel Temer to reduce the size of upcoming projects in order to attract more mid-sized construction companies.
As larger companies are facing the federal police's Lava Jato corruption probe, creating smaller projects that open doors for mid-sized enterprises, as well as foreign firms, are key to the success of these public-private partnerships, local paper Folha De S. Paulo reported the technicians as saying.
According to the Inter-American Development Bank (IDB), Mexico's smaller highway concessions of 150km or so have been more successful than Brazil's, which reach more than 1,000km on occasions, the report said.
Program officials are currently reviewing each of the 13 Crescer phase one projects and the next step will be a final review by Temer and Moreira Franco, who heads the interim government's investment partnership program.
Moreira Franco and interim president Michel Temer (CREDIT: Brazil government).
The idea is to avoid gridlocks which occurred during concession tenders under logistics investment program, PIL, announced last year by suspended president Dilma Rousseff.
New tenders by Temer's government will only occur if the senate agrees to impeach Rousseff. A final decision is expected from August 25-27, shortly after the closing of the Olympic Games in Rio de Janeiro.
Among the upcoming concessions are those for railways, highways, ports and airports, as well as the energy and water sectors.