Brazil infra sector set to benefit from PPI investment program

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Friday, April 21, 2017

Brazil's investment partnerships program, PPI, is a step up from past infrastructure growth programs as it provides more security for potential investors, local industrial sector expert Edson Campagnolo told BNamericas.

The PPI, which falls under the federal government's infrastructure plan known as Crescer (growth), involves concessions in the sectors of transportation infrastructure, basic water and sanitation, oil and energy, telecommunications, among others.

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"Past programs were more like intentions than actual plans as they lacked concrete studies. PPI, on the other hand, involves initiatives which already have completed feasibility studies. This is one of the main differences," said Campagnolo, who is the president of the Paraná state's industrial federation (Fiep).

Due to the size and complexity of works, the need for steadfast planning is especially important for railroad public-private partnerships (PPP). Without in-depth technical analysis and well-developed plans, private sector funding is hard to come by for these types of projects, the executive said.

Meanwhile, to help push rail initiatives, the federal government will soon be looking for consultants to put together technical, economic and environmental feasibility studies for new PPPs. Once this is done, attracting investors will be easier, he said.

Edson Campagnolo (CREDIT: Fiep).

Campagnolo pointed out that the Paraná state is receiving ministry funding for its own upcoming infrastructure projects. Among them are two concession contracts at the Paranaguá port. Tenders should be launched by August.