Invepar failed to tap the international debt market to raise cash.
Flooding reconstruction is going ahead in the hope of avoiding delays in projects once thousands of recently-elected local officials take office in January.
This new regulator will have to supervise the contractors who won six PPP highways worth US$8bn in order to verify compliance of transparency norms.
The new rules seek to boost local participation in the structuring of projects.
The move forms part of Doria's privatization agenda and is fueled by allegations of Dersa executives' involvement in corruption.
The project will benefit the entire population of Brazil's Rio Verde city.
Argentina establishes integrity framework for PPP trust