Post by xyz3000 on Feb 12, 2024 6:39:52 GMT
The formalization of the PPP Guarantee Fund (Public-Private Partnerships), made this Friday (27/1), could leverage investments between R$20 billion and R$30 billion in infrastructure in the coming years, as estimated by the secretary of the National Treasury, Joaquim Levy. What PPPs aim to do is be the perfected formula for a mechanism that enables the execution of public infrastructure works in Brazil. The guarantee fund, in this context, is essential, as it is the only way to make the system viable. With the failure of state works, the enormous flaws discovered later in privatization and the precariousness of public concessions, Public-Private Partnerships were reached.
For this revenue, the government contracts private companies, which, once financed, will be remunerated based on the return of the finished work. The guarantee fund will help creditors, if the government fails to pay, have their credits reserved. In other words, in the event of a default, you will not have to join the endless queue of court orders. Joaquim Levy explained to Estonia Email List the newspaper Folha de S. Paulo that these investment values will be achieved if the government's participation in PPP projects remains between 10% and 15%. During the first meeting held on Friday in Brasília, the federal government transferred shares that the Treasury had in Banco do Brasil, Companhia Vale do Rio Doce and Eletrobrás to the Fund, totaling R$3.43 billion.
It is a sure sign that the federal government is really willing to make this long-term investment,” said Treasury Secretary Joaquim Levy, commenting that the fund will provide guarantees to the private sector when investing in partnership with the government. He was unable to say whether the government already has a PPP project ready for the immediate launch of a bidding notice, but said that the first project to come to fruition should be BR-116 and BR-324, in Bahia. The Guarantee Fund is made up of 20 million ON shares of Banco do Brasil, currently valued at R$1.125 billion; 15.2 million CVRD PNA shares (R$ 1.44 billion) and 20 billion Eletrobrás shares (R$ 861.6 million). The transfers made to the Fund correspond to 2.5% of BB's shares (the government has 72%), 1.3% of Vale's capital (all the government's stake in the company, minus the golden share), and 3.5% of the capital of Eletrobrás (out of a total of 50.
For this revenue, the government contracts private companies, which, once financed, will be remunerated based on the return of the finished work. The guarantee fund will help creditors, if the government fails to pay, have their credits reserved. In other words, in the event of a default, you will not have to join the endless queue of court orders. Joaquim Levy explained to Estonia Email List the newspaper Folha de S. Paulo that these investment values will be achieved if the government's participation in PPP projects remains between 10% and 15%. During the first meeting held on Friday in Brasília, the federal government transferred shares that the Treasury had in Banco do Brasil, Companhia Vale do Rio Doce and Eletrobrás to the Fund, totaling R$3.43 billion.
It is a sure sign that the federal government is really willing to make this long-term investment,” said Treasury Secretary Joaquim Levy, commenting that the fund will provide guarantees to the private sector when investing in partnership with the government. He was unable to say whether the government already has a PPP project ready for the immediate launch of a bidding notice, but said that the first project to come to fruition should be BR-116 and BR-324, in Bahia. The Guarantee Fund is made up of 20 million ON shares of Banco do Brasil, currently valued at R$1.125 billion; 15.2 million CVRD PNA shares (R$ 1.44 billion) and 20 billion Eletrobrás shares (R$ 861.6 million). The transfers made to the Fund correspond to 2.5% of BB's shares (the government has 72%), 1.3% of Vale's capital (all the government's stake in the company, minus the golden share), and 3.5% of the capital of Eletrobrás (out of a total of 50.