On last 13th September, 2016, the board of the Investment
Partnership Program - PPI held its first meeting, in which the
Brazilian government announced 34 infrastructure projects
(concessions and privatizations).
The government has also announced the 10 main guidelines of the
Program, included in Federal Law No. 13.334/2016 (PPI Law), enacted
Use Technical standards;
Focus on services quality;
Clearly define services quality indexes;
Strengthen the authority of regulatory agencies;
Submit projects to public consultation and approval by the
Federal Court of Audits – TCU before tender;
Publish tender documents both in English and Portuguese;
Allow 100 days between tender publication and proposal
Require preliminary environmental license (or guidelines for
obtainment of such license issued by environmental agency) before
Require long term financing to be contracted at the very
beginning of the concession; and
Submit possible alternative solutions to existing concessions
to public consultation.
In an attempt to reduce private investors' risks, one of the
main announcements relates to eliminating the bridge loans, as well
as including other financial institutions into the model, such as:
Banco do Brasil, Fundo de Garantia do Tempo de Serviço -
FI-FGTS, Caixa Econômica Federal – CEF, Banco Nacional
de Desenvolvimento Econômico e Social – BNDES and
All projects are expected to have at least 20% equity and BNDES
is able to subscribe up to 50% of the infrastructure debentures to
be issued for each project, jointly with FI-FGTS and CEF.
BNDES informed that, for the airport projects, it will finance
up to 40% based on the Long Term Interest Rate – TJLP, while
for the highway projects, it will finance up to 50% based on TJLP
for the 1st cycle and up to 40% for the 2nd cycle.
PPI's fundamental goal is to rearrange the economy and, as a
consequence, generate new jobs. By valuing credibility,
predictability and transparency in he projects, PPI also aims at
the strengthening legal certainty, regulatory stability and
According to the government's pipeline, the tender documents
of the airport port projects are expected to be launched in the end
of this year.
As next steps, normative rules are expected to be issued
approving the implementation of each of the projects.
Click here for the list of projects.
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guide to the subject matter. Specialist advice should be sought
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