Infrastructure Structuring Privatization Projects: What Are the Critical Success Factors for These Initiatives?
Brazil - Infrastructure
Water and Wastewater Sector. Solid Waste Management.
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Brazilian infrastructure includes railways, ports and highways. It also includes water resources management, wastewater treatment, sanitation, solid waste and solid waste. U.S. companies can provide design and construction solutions and project operation. Brazil's Government (GOB), through a series of auctions for concessions and regulatory changes, has undertaken a major privatization initiative to attract financing in order to close the largest infrastructure funding deficit in Latin America. The Ministry of Infrastructure's (MInfra), among other activities, has included virtual roadshows to show off concessions in the railways, airports and highways. The Ministry of Regional Development and Investment Partnerships Program have promoted projects worldwide to compete for investment in infrastructure projects. Paulo Guedes, the Brazilian Economy Minister at the time, noted in August 2022 that GOB had collected more than $24 billion in fees for concessions, and over $96 billion of committed investments.
Brazilian transportation can be divided into several segments, including cargo rail, passenger railroad, logistics infrastructures, roads, port, public transport, urban mobility and smart transportation systems. According to the World Bank’s latest Logistics Performance Index 2018-2019, Brazil ranked 56th among 160 countries for the quality of its Infrastructure. The primary mode of transport for cargo is still trucks, making logistics more costly. This also contributes to "Custo Brasil", the concept that high operating expenses are a part of the costs of doing business in Brazil. The logistics costs are around 12.7% (4% higher than the United States) of Brazil's Gross Domestic Product. This reflects an inefficiency caused by poor transportation infrastructure. It represents an additional $845 million for Brazilian companies compared with companies in the United States. According to the World Bank's statistics, the cost of logistics bottlenecks is 7% higher than that of exports.