Roles Played by Public-Private Partnerships and Concessions in Public Institutions

The first projects under the management of the current Porto Alegre’s mayor on Public-Private Partnerships and concessions were discussed on 30th June. Felipe Montoro Jens, an infrastructure projects expert, reported that the main subjects discussed were, public lighting, public market, bidding for concessions of public clocks and construction of a new headquarters for Materno Infantil Presidente Vargas Hospital. The main objective of the meeting was to establish priorities, services and areas the government will pursue partnerships with the private sector.

According to Mayor Nelson Marchezan, Public-Private partnerships (PPP) represent one way of overcoming the financial crisis that Brazil is going through. These PPPs will be incorporated in all possible areas in municipal administration. This has led to the formation of Municipal Program Partnerships (PROPAR) and the Program Management Board Partnerships (CGP) on May 2 this year. The main aim of these bodies will be to align and modernize public administration.

Mr. Felipe Montoro Jens highlights that CGP, as an organ of governance and active transparency, will be structured in a manner of PPPs and concessions. In return, this will guarantee the correct public supervision on projects. He also reports that the management council will be in charge of the planning and execution of Public-Private Partnerships and concessions within its attribution. In addition, PROPAR will be responsible in defining the conditions under which projects will be included, approve calls for public announcements, evaluate reports on the implementation of concessions and PPPs agreements as well as to approve the bidding processes.

The president said that the current situation in Brazil will require inclusion of private organizations in administration. This will significantly improve the financial situation of public institutions. Felipe Montoro noted that private enterprises have more resources which make them important partners in tasks such as reducing water wastage. With their advanced technology, private companies are crucial in water management in the country by making huge investments in sewage networks.

It is important to keep clear goals while drafting contracts and inclusion of inspections by public agencies in services provided. This, in one way or the other, favors the implementation of partnerships where concessions are involved. Felipe Montoro reports that, it is paramount for authorities to review the activities presented during concession. In return, this will guarantee that what was agreed is being delivered or not.

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