By Thomaz Favaro
The Brazilian state of Sao Paulo, the country’s commercial engine and home to 22% of its population, announced last month the resumption of public auctions in the infrastructure sector, suspended since the early 2020s by the COVID-19 pandemic. concessions will attract $1. 3 billion in investment.
Investors and operators in the infrastructure sector are likely to gain advantages from predictable auction schedules and a largely business-friendly position through local government in the short and medium term.
Six public auctions are expected to resume, probably in the first part of 2021. The main projects come with the concession of the $556 million coastal road and two commuter train lines ($467 million). The State Administration said public notices will be issued until the end of this year. .
Positive outlook
State and federal governments have prioritized infrastructure projects in recent years, as there has been broad political consensus on the need for the country’s operating environment with support from the personal sector, this was through the management of President Jair Bolsonaro, who continued to prioritize the granting of primary projects such as ports and airports. Since this program is not particularly dependent on legislative approval, it has advanced at a moderate rate (despite Bolsonaro’s governance challenges).
State governments have also sought to attract personal investment in infrastructure development. Companies operating in the state of Sao Paulo, which has a GDP higher than Argentina, have benefited from a general business-friendly position during consecutive administrations, which is likely to continue. over the next two years.
In addition, because the local government is doing more than its federal counterpart in terms of governance, the state is going to put its concession program into effect at a much faster pace. signed in Brazil; a 30-year allowance – valued at $2. 5 billion – spanning 791 miles of road.
The prospects of companies
Despite the many uncertainties related to the pandemic, the state government of Sao Paulo is likely to expand its infrastructure through personal sector tenders over the next two years. vital role in ensuring the participation of personal investors.
In the long run, corporations operating in the state will do so more successfully and with fewer threats thanks to the relentless progression of infrastructure.
Thomaz Favaro is Senior Director and Analyst for Brazil and the Southern Cone of Control Risks, in Sao Paulo, to which Helena Ceneviva contributed.
Control Risks is a global threat consulting company that helps organizations manage threats, new opportunities, and solve complex crises or disorders.
Control Risks is a global threat consulting company that helps organizations manage threats, new opportunities, and solve complex crises or disorders. Visit us in controlthreats. com.