Infrastructure public-private partnerships (PPP) in Brazil stand a better chance of success with the support of international players, local attorney Rogerio Emilio Andrade told BNamericas.

As many of Brazil's major engineering companies are involved with the corruption scandal related to state-run oil company Petrobras, these companies are not currently in a position to take on large-scale PPPs by themselves, according to Andrade, who specializes in regulatory matters related to infrastructure.

"I believe that the Brazilian government cannot afford to take on the financial burden either, regardless of whether it is done through economic agents or by financial institutions," said Andrade.

The country should consider the possibility of opening the door to major international players in the infrastructure sector. That should not be done directly, but through partnerships with small and medium-sized Brazilian companies, and more with those not under the microscope of the federal police's Lava Jato corruption probe.

This gives the option of transmitting the technical knowhow of international players to these local firms. With regulatory changes such as these, perhaps we will see the rise of new major players in the industry, Andrade said.

Currently the senior partner of law firm Rogério Emilio de Andrade Sociedade de Advogados, Andrade has also been a federal attorney at the Brazilian attorney general's office and former attorney general and chief of staff of civil aviation agency ANAC.

Some of the infrastructure projects currently planned by the federal government are included within its 198bn-real (US$55.5bn) logistics investment program, PIL, announced last year. Under that program, some 59bn reais in highways, railway, port and airport concession tenders are expected to be carried out this year.

 

Source: BNamericas

Photo :Rogerio Emilio Andrade (CREDIT: handout)

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