PPP's in modern Brazil

There are few in Brazil who do not share a positive attitude to the near-revolutionary 'Minha Casa. Minha Vida' scheme.  This enables millions of people to consider seriously owning a decent home of their own. The programme involves an unusual co-operation between private investment and the public sector but it’s also interesting to look at the wider picture in Brazil.

Throughout the last decade the arrangements known as public-private partnerships (PPP’s) have steadily been making inroads in Brazil.

Essentially these are financial co-operations between the public sector and private finance. Their aim is to enable the development of various construction projects for public facilities (such as hospitals and schools for instance) faster than would otherwise be possible.

The basic idea is that private money, at least mostly, enables the building of these needed facilities and then the public sector (national, state or local) repays the cost over an extended period or else simply ‘rents’ the establishments.

Initially, the idea was launched in Brazil by the national government with a view to enabling very large scale projects. In recent times, however the concept has gained popularity for more medium sized projects, not just in health and education but sectors such as the environment, sport and real estate.

The co-ordinator of the organisation 'PPP Brazil' is Bruno Ramos, who is, not surprisingly, very optimistic about the future extension of the concept throughout the country.  Ramos commented that even in areas and States initially wary of the PPP idea, they are now looking with great interest at launching schemes. However, the concept can be complex when putting particular projects into practice. Contracts must have safeguards built-in, especially those relating to time-scale and the quality of the ‘product’.

The United Kingdom is one of the world leaders in widespread use of PPP's, which have been supported by all three of the main political parties there, in government or opposition. However, there are those in every party (and elsewhere) who are not fans of the idea. They claim that the larger long-term cost to the public purse of such projects outweighs the convenience of being able to launch the completed schemes quicker.
Among the enthusiasm in Brazil there are also people there who share these concerns.