The Brazilian Investment Partnership Program
Both structures, along with other federal agencies, will act in an articulated manner to ensure stability, legal certainty, foreseeability and effectiveness for the investment policies.
PPI’s purposes include:
• Increasing investment opportunities, creating jobs and stimulating technological and industrial development in line with the country´s social and economic development goals;
• Ensuring the enhancement and the expansion of public services and infrastructure projects, with appropriate rates to users;
• Promoting full and fair competition for the provision of services;
• Ensuring stability and legal certainty on agreements, with minimal government intervention in businesses and investments;
• Strengthening the State’s regulatory role as well as the autonomy of the regulatory agencies.
When a project is qualified for the Investment Partnership Program, it is addressed as national priority. The agencies and other administrative entities involved should then guarantee that the actions necessary to the structuring, release and execution of the project occur efficiently and economically.
Attributions of the PPI Council
The Council shall meet whenever needed to discuss the PPI agenda, which will be organized by the PPI Secretariat. The Council´s major attributions include:
• Recommending to the President of the Republic the inclusion of proposals brought by the Ministries in the PPI, and recommending the long-term policies for investment partnerships;
• Coordinating, monitoring, assessing and supervising PPI actions and supporting the agencies in their actions within the PPI;
• Carrying out the competencies attributed to the:
- Federal Board of Public Private Partnerships (Act No. 11079/04);
- National Council for the Integration of Transportation Policies (Act No. 10233/01);
- National Council of Privatization (Act No. 9491/97).
Attributions of the PPI Secretariat
The PPI Secretariat´s major attributions include:
• Assisting the PPI Council with the proposals received from the Ministries and setting the meetings´ agenda;
• Advising the President of the Republic on subjects regarding the PPI, preparing reports and studies and proposing rules, measures and guidelines for the projects;
• Coordinating, monitoring, assessing and supervising PPI actions and supporting the actions necessary to the execution of the projects by the Ministries and regulatory agencies;
• Promoting the PPI projects and articulating with investors and other interested parties, including state and municipal entities.
Attributions of the Ministries
• Submitting proposals and projects to the PPI Council for deliberation and inclusion in the Investment Partnerships Program;
• Promoting project’s technical and modeling studies;
• Conducting bidding process and the execution of infrastructure projects, with the support of the PPI Secretariat and the regulatory agencies.
Attributions of the Regulatory Agencies
• Regulating economic sectors aiming at fostering competition and carefully addressing the quality of the services provided by the private agents;
• Following up the Ministries' technical and modeling studies upon request and executing technical studies for the projects within their competence;
• Supervising the execution of concession and PPP agreements within their fields of action;
• Promoting contractual revisions and assessing claims of contractual rebalance in partnership agreements within their fields of action.
The National Bank for Economic and Social Development (BNDES) is a financial institution that supports the PPI through the following actions:
• Assessing the bankability of projects included in the Program;
• Offering financing lines according to the applicable credit requirements;
• Managing the Supporting Fund to Partnerships Structuring (FAEP), which will procure advisers for the integrated structuring of PPI projects;
• Managing the National Fund for Privatization (FND) and conducting the privatization procedures of State-owned enterprises included in the PPI.
The Caixa Econômica Federal Bank also plays an important role in the PPI, extending its own financing lines to the projects, once the credit requirements are met by the SPVs.