States lead in public private partnerships

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Despite their limited number, the PPP projects that have been launched are important, primarily because they are making costly infrastructure projects possible. No less significant is the fact that these projects are moving ahead in states controlled by the opposition PSDB party. Other states governed by opposition parties, such as Rio Grande do Sul and Goias, are looking to the model to develop PPPs. The state of Bahia, too, has made headway towards developing its own PPP programme; however, with the recent political transition, it is possible that planned projects will be postponed or abandoned.

The PPPs in Minas Gerais are of particular interest because it is likely that Aecio Neves, the current governor, will be the next president of Brazil, given his popularity and his political pedigree (the grandson of Tancredo Neves). In the event of a Neves presidency, the PPP model developed in Minas Gerais would almost certainly be replicated on the federal level.

The PPP legislation is poised to be one more instance of the private sector stepping in to fill the void left by the federal government's inability to act. The focus so far has been on infrastructure projects, but as the programme matures, PPP will expand into new areas, including services. The development of PPP proposals by the private sector will not only facilitate investments in infrastructure but also cater to the needs of the private sector.