PPP in BrazilPPP in BrazilCase StudiesCase Studies
Marcelo de Lima e SouzaPPP Unit – Economic Advisory
Ministry of Planning, Budget and Management
Mexico, February 24th 2010
PPP Case Studies
• Case studies• Datacenter Banco do Brasil• Pontal Irrigation Project• National Public Television Network
• General remarks
Datacenter Banco do Brasil
The Project
• The construction, operation and maintenance of a datacer building for Banco do Brasil e Caixa Econômica Federal (both government controlled banks)
• High standards facilities
The Project
• Private partner provides:• Facility infrastructure, and services
(security, cleaning, reception etc), energy, air conditioning
• Private partner is not responsible for the provision of computers• Computers are provided by the public
partners
The Project in Numbers
• Duration: 15 years• IT area: 5.000 square m• Demand risk: 0 (guaranteed by the public
partners• Additional revenues: Yes. 10% sharing
with the public partners• Winning Bid: R$ 880.000.000• Price reduction through competition:
about 15%
Pontal Irrigation Project
The Project
• Located in Petrolina, a pole of irrigated fruit production and exportation
• Total area 33,526 ha.,• 7,717 ha. of irrigable land
The Project
• Private Partner Obligations:• Finish construction, operate and maintain
common infrastructure (70% has been built by the government)
• Allocate land to private agribusiness• Run crops on the land, with total freedom to
choose the cultures• Integrate and provide technical assistance to
small farmers in at least 25% of the irrigated area
PPP Datasheet• Contract Duration: 25 years• Regulation: National Agency for Waters
(ANA)• Bidding weights Criteria:
• Integration of small farmers (65%)• Lowest governmental payments (35%), with a
maximum value of R$ 202.310.135,00
• Economic Incentives• Full occupation of the land must occur in no
more than 06 years• Most of the payment is due with the occupation
of the land and not only for potential water provision
• Scheduled bidding date: 29.03.2010
National Public Television Network
The Project
• Creation of the National Digital Public TV Network:– Private Partner will be responsible for
building and operating the network– Coverage will include all municipalities with
more than 100.000 people – Content will be provided by public TV
stations through EBC (Empresa Brasil de Comunicação), a government owned company
The Content1) Canal TV Brasil
i. TV Brasil HDTVii. 1Seg TV Brasil
2) Canal Multiplex Nacional 1i. TV Câmaraii. TV Senado 1iii. TV Senado 2iv. TV Justiçav. 1Seg Mux1vi. Secom/TV NBR
3) Canal Multiplex Nacional 2i. TV Escolaii. TV Professoriii. Canal Universidadeiv. Canal Saúdev. TV MinCvi. 1Seg Mux2
4) Canal Multiplex Locali. Legislativoii. Universitárioiii. Comunitárioiv. TV Pública Localv. Serviços e.govvi. 1Seg
The Network in Action
The Project
• Private Partner is responsible for construct, operate and maintain the network
• Government payments occur only when the service is provided• If the service is not provided or is provided in a
quality below the fixed minimum standard, no payment is made
• Additional revenues may be obtained by the private partner• 10% of these revenues will be shared with the
public partner to lower government payments
The Project in Numbers
General Remarks
Critical Issues to Consider in a PPP
• Contract specifications should be stable over time
• Specifications should be objective and easily measurable
• Dimension of investments • Risk allocation• Relevance of operation and
maintenance expenditures• Information about PPP
Competition is Crucial
• Private sector behavior may change dramatically before and during a bidding procedure
• Competition reduces government expenditures and increases the quality of the proposals
• Open auction induces competition
Thank You.
Marcelo de Lima e Souza
Ministério do Planejamento, Orçamento e Gestão
Tel: +55 61 2020-4944
Fax: + 55 61 2020-8084
E-mail: [email protected]
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