Public-private partnerships in the development of the Brazilian state: perspectives for economic growth and the stucturing of public finance

A Public-Private Partnership is collaboration between public and private institutions, the objective of which is to structure, negotiate and implement resources, development, construction and the operation of public equipment. The process of developing PPPs in Brazil requires a lot more time than any other traditional project, as the government must analyze alternative ways of structuring the PPPs, studying the market, the costs, the type of financing and the risks. These future perspectives will, over time, reorganize state finances and make possible new public investment and new development projects. The delay is a result of the bureaucratic process in conjunction with governmental caution, as well as to the existing financial market. The PPPs will reduce the need for public indebtedness, preserving the government's borrowing power to obtain resources for essential services in needier areas. Although it is better for the government to transfer risks and responsibilities to the private sector, the responsibility will be shared in the PPPs, and therefore much caution should be exercised in consummating the partnership.