1 / 20

PPP in Brazil Procedures & Methodology

Marcelo de Lima e Souza PPP Unit – Economic Advisory Ministry of Planning, Budget and Management Mexico, February 23 rd 2010. PPP in Brazil Procedures & Methodology. Summary. Brazilian PPP Institutional Framework PPP Project Selection and Development Methodology & Capacity Building.

starr
Download Presentation

PPP in Brazil Procedures & Methodology

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Marcelo de Lima e Souza PPP Unit – Economic Advisory Ministry of Planning, Budget and Management Mexico, February 23rd 2010 PPP in BrazilProcedures & Methodology

  2. Summary Brazilian PPP Institutional Framework PPP Project Selection and Development Methodology & Capacity Building

  3. PPP Institutional Framework

  4. PPP in Brazil: a narrow definition • In many countries • Almost any kind of long-term relationship between public and private sectors • Joint ventures, leases, franchises, concessions, PFI (UK), • privatization... • In Brazil • PPP are special kinds of concessions • Common Concession – a concession of a public service in which revenues come exclusively from user tariffs • PPP and Common Concessions have similar economic structures

  5. PPP in Brazil: a narrow definition • Concessão patrocinada (Sponsored Concession) • Common concession of public services • Origin of revenue: tariff + public payments • Concessão administrativa (Administrative Concession) • Direct or indirect services to the Public Administration • Public services • Economic activities not listed as public services • Origin of revenue: public payments

  6. Revenue Generation and Type of Contract Concessions 8.987/95 9.074/95 PPP 11.079/04 and Public Tendering Law 8.666/93 PPP Law 11.079/04 Sustainable projects Independent Revenue Generation Capacity Partially sustainable projects by means of public resources Traditional projects of public investments and public procurement

  7. Legal Requirements • Law 11.079/2004: • Contract duration from 5 to 35 years • Contract Value: at least R$ 20mi (US$ 11mi) • Contract Object can’t exclusively be restricted to: • Hiring personnel • Providing and/or installing equipments • Providing Civil works

  8. PPP Project Selection and Development

  9. Key Players • CGP - PPP Council • Members: • Ministry of Planning (coordinator) • Ministry of Finance • Presidency Chief of Staff • Responsibilities: • Establishes contracting procedures • Defines PPP priority projects • Authorizes tendering processes

  10. Key Players • PPP Unit / Economic Advisory M. Planning • Technical support to the CGP • Administrative support to the CGP • Advisory to third parties • TCU – National Audit Office • Oversees the proceedings on various levels • STN – National Treasury • Fiscal controls

  11. Development of PPP Projects 1 2 …………… PPP Projects 4 3 PHASE 1 Identification of PPP projects from the Multi-Year Plan PHASE 2 Preliminary analysis and prioritization of PPP projects PHASE 3 Structuring of PPP projects - PPP Projects Portfolio Multi-Year Plan PPP Structuring Team

  12. Projects prioritization criteria 1 2 PPP Projects …………… 4 3 Development Strategy of the Federal Government Revenue generation capacity Level of project development Interest by the private sector 3

  13. Required Studies for a PPP Convenience and Opportunity Studies on Fiscal Impact Technical Studies Economic and financial feasibility Legal Studies Determine and project demand Economic/Financial Model Operational Project and Performance Indicators Legal Model and documents Business Model Engineering Project and Investment Program Financing Structure Environmental Studies Risk Analysis

  14. Methodology & Capacity Building

  15. Project ATN/MT 9587-BR • Cooperation Agreement with IADB/MIF • Consolidate the PPP Unit and provide support to sector units and to other government levels • Institutionalize PPP methodology • Structure and develop projects

  16. Consolidation and Support (2009 activities) • 01 National Training Course • II Course on PPP Development • 300 participants • 01 Regional Seminar • I Seminar on PPP • 270 Participants • 05 Local Training Courses (Aracaju, Fortaleza, Natal, São Luis, Teresina) • About 50 participants on each session

  17. Methodology Development • Development of a Value for Money Methodology • Selection of external consultants in a competitive process • Comparison of foreign methodology and best practices • UK, Ireland, Australia, Netherlands, South Africa and Canada • Creation of a quantitave and qualitative method fo • Publishing a PPP Project Analysis Manual • Creation of an Analysis Model for PPP Projects • Development of an illustrative applied model on eight projects on different economy sectors • Public officials training program • Expected conclusion date: November 2010

  18. Project Structuring • Technical Cooperation Agreements signed with states and municipalities: • Agreements with Bahia, Ceará, Manaus, Maranhão, Piauí,Rio Grande do Norte • Development of projects: • Highway (Piauí) • Logistics Plataform (Bahia) • Administrative Center (Rio Grande do Norte)

  19. Project Structuring • Technical Cooperation Agreements signed with federal organizations: • Brazilian Space Agency: geostationary satellite • Ad hoc cooperation

  20. Thank You. Marcelo de Lima e Souza Ministério do Planejamento, Orçamento e Gestão Tel: +55 61 2020-4944 Fax: + 55 61 2020-8084 E-mail: marcelo.l.souza@planejamento.gov.br

More Related