The City of Porto Alegre has approved a wide-ranging Public-Private Partnership (PPP) plan to procure four projects in the coming months that includes sanitation.
The program, created on the basis of Provisional Measure No. 768/17, creates a fund to encourage concessions and PPPs in states and municipalities and finance the preparation of technical studies focusing on urban and social infrastructure, such as street lighting, basic sanitation, solid waste, urban mobility, among other demands of the population. The fund will be managed by Caixa Econômica Federal and MP will also be able to use the Infrastructure Guarantee Fund for projects resulting from municipal PPPs. Previously this fund was intended to cover the risks associated with large grants and financing only for state and federal projects.
Brazil's Planning Minister said that because it is hard work and a pioneer, it is important the engagement of municipalities and stressed that the Federal Government is in a position to support municipalities in various ways, from advising municipalities with studies of technical feasibility and financial support through funds from Caixa and Banco do Brasil, with a projected contribution of BRL 180 million (US$45 million) by 2019. Federal support should leverage up to BRL4 billion (US$1.01 billion) in investments, contributing to income. The minister stressed that "there will be no shortage of resources for the program. If we have higher demand, we will complement it, "he said.
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