Cash-strapped Brasília looks to PPPs for infra projects

The federal district of Brasília wants to attract more public-private partnerships to conclude infrastructure projects begun under previous administrations.

"As the resources practically do not exist, major works will only leave the drawing board this way [via PPPs]," Izídio Santos, the Brazilian capital's public works secretary, was quoted as saying by local newspaper Correio Braziliense.

After two years of severe economic recession in 2015 and 2016, Brazil's economy grew just 1.1% in 2017 and at the same rate in 2018. As a result, tax collection has fallen drastically, forcing local governments to look to the private sector for investments in infrastructure.

Potential projects to be developed under PPPs in Brasília include the construction of bridges over lake Paranoá, requiring an estimated 2bn reais (US$526mn), and the Transbrasília highway.

"There is also an expectation to extend the subway to the north wing and the VLT [light rail line] through a PPP," said Santos.