Lula inks PPP bill

Brazil's President Luiz Inácio Lula da Silva signed a bill Thursday approved by congress earlier this month to promote public-private partnerships (PPP), government news agency Agencia Brasil reported. The bill establishes general standards so the federal, state and municipal governments can perform infrastructure project and service concession contracts with the private sector. Contracts would span 5-35 years, valued at no less than 20mn reais (US$7.39mn). The private sector would have to put up a minimum of 20% financing when pension funds are involved and 30% when the funds are not involved. The bill also envisions the creation of a fund dubbed "Fundo Garantidor" aimed at sharing risk between the public and private sectors. PPPs must be seen as long-term projects, said Lula during the signing ceremony, adding the move will give future governments a solid instrument as long as government and business comply with their obligations.