Brazil's new transition government has indicated that revitalizing the Brazilian economy is its main priority. On Thursday, May 12, the federal government announced the so-called "Growing Plan" (Programa Crescer) to fast track infrastructure projects in Brazil. The Plan was introduced by Provisory Executive Order No. 727 ("PEO 727"), which creates the Investment Partnership Plan - PPI (Programa de Parcerias de Investimentos).
The main topics of PEO 727 are:
- the creation of the PPI Presidential Board (which will advise the Brazilian President), and an Executive Secretary fully dedicated to the Plan,
- specific proceedings to carry out projects,
- the creation of the Fund to Support Partnerships, and
- fast-track actions to approve projects.
The PPI is one of the top priorities of the new Government, which is promising less interference with investments. One controversial provision of PEO 727 states that companies that prepared project studies will not be allowed to bid for same projects.
In due course, the government should publish decrees defining the priority projects and privatizations, which are expected to include:
- Public infrastructure including roads, railroads, ports and airports; and
- Privatization of important state-owned companies, such as electricity companies and Infraero (airport infrastructure).
Moreover, infrastructure projects included in the Logistics Investment Plan ("PIL"), carried out by President Roussef′s administration, may be reviewed in order to attract more bidders.
PEO 727 will be submitted to the Congress for discussion and approval and, therefore, is subject to adjustment. President Michel Temer, who was sworn in last Thursday, will remain in office while the Senate decides on the impeachment of President Dilma Roussef. The trial should be concluded within a maximum of 180 days. If the Senate decides to impeach President Roussef, Michel Temer will replace her as President until December 31, 2018.
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