Brazil mulls PPP dispute arbitration bill

Wednesday, November 19, 2014

Brazil's labor commission approved a bill that permits arbitration in public-private partnership (PPP) contract disputes.

The measures in the proposed legislation are designed not only to speed up the dispute resolution process but also to make it easier for foreign firms to enter PPPs.

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Drafted by ex-Amazonas state representative Carlos Souza, the bill would amend the current PPP bidding law.

Other federal government commissions now have to approve the bill before it can be signed off. As there is no need for a congressional vote on the legislation, in cannot be appealed in congress, a lower house releases aid.

"By adhering to the procedures of recognized arbitration institutions ... [contractors] will have more legal security in dispute negotiations, eliminating risks related to manipulation or acts of bad faith," Ceará state lawmaker André Figueiredo said.

Parties involved in a dispute would choose the arbitrator, whose judgment would hold the same legal weight as a court ruling, the release said.