Felipe Montoro Jens is a well-known businessman and infrastructure expert in Brazil. He is contracted by the government of Brazil as a consultant, overseeing several projects that are under the supervision of the Program of Partnerships and Investments, or PPI for short. One of his recent projects would be monitoring the auction conducted by the government to award several projects to private corporations. The auction took place in August, and 57 projects are slated to be given to private companies. The total amount of investment by the government is around the US $1.32 billion, and they are hoping for the projects to be finished before it hits the deadline.
Out of the 57 projects given to the private sector, more than half would commence in the second quarter of 2018. These include airports and other infrastructure projects across Brazil. It is also reported that several facilities owned by the government will be sold to private corporations, for them to manage. Felipe Montoro Jens agreed that the plan of the state to award several projects to the private sector would bring better results to the infrastructure network of the country. Other projects are scheduled to start in the latter part of 2018, and Felipe Montoro Jens will once again seat with several people from the government looking for solutions on how it will be awarded to the most deserving private company.
Some people are entirely against the PPI program of the government, but Felipe Montoro Jens explained to them that for a developing nation like Brazil, the PPI brings in a lot of help. In the past, Felipe Montoro Jens is instrumental in building airports, seaports, lighting, roads, and bridges all throughout the country. He is present at all hearing, and he has seen what the private corporations are offering the government to get the deal. With PPI, the government gets to choose which private company is willing to do the project for the lowest price with the best quality.
According to a proxy report by the ministry of planning, more than 2796 work opportunities are paralyzed in Brazil. According to Felipe Montoro Jens, approximately 517 or 18 % of these opportunities are based in the infrastructure sector. When boiled down, the sanitation sector suffers the ultimate impact on the infrastructure niche. This survey indicates that while there is little investment that is channeled towards infrastructural growth, only 2% of the GDP is invested in the infrastructure.
This move is attributed to the interruption resulting from the shutdowns of the works without the establishment of a new source of resources for consumers. Jens advocates that the disruption in the construction process of other amenities like the preschools, day-care units in the academic sector was also featured in this report, but they are considered to have less impact overall.
The cause of the discontinuation
According to this report, some of the aspects that have hindered the construction process entails financial and budgetary constraints, issues related to land ownership and abandonment of construction projects by some construction firms. To this end, the primary reason behind this abandonment is the technical problems. While some small construction companies took over the construction projects in nurseries and school, they have been forced to stop soon after commencement due to the economic crisis.
Felipe Montoro Jens advocates that following the current economic constraints experienced in Brazil currently, there is need to slow down the construction pace in the country, which has inspired the federal government in Brazil to step in hence interrupting various vital construction schemes. This process is evidence of contraction and fiscal deterioration in the investment sector, and it has severely affected the local project and new ventures overall.
Solution to the problem
For Brazil to keep afloat in the current development and investment uncertainty, the CNI prescribes the following measure. To start with, there will be a need to review and improve the micro-planning sector and enhancement of the internal controls. Similarly, stimulating innovation and research will also be helpful.