The Brazilian PPP model can be defined as special concession arrangements through which the Administration delegates to a private partner the provision of a service, with or without prior construction works, and remuneration paid by the users and the state, or only by the state.Law 12.766 of December 27, 2012 introduced changes to several laws, including the PPP Law. It gives more flexibility to the PPP legal system, for example by allowing subsidies to be provided prior to the beginning of service delivery. The PPP legal framework in Brazil was developed taking advantage of related international experience, including the UK Private Finance Initiative (PFI).
Key players of the PPP projects put forward:
- Ministry of Planning (coordinator) establishes contracting procedures, assesses, models, and monitors potential PPP projects, which have been identified as priorities by the Partnership Steering Committee.
- Ministry of Finance defines PPP priority projects, appraises any proposed PPP project and makes sure that the program is within the maximum allowable allocation for PPP projects.
- Presidency Chief of Staff authorizes tendering processes.
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