Public-Private PartnerShips (PPPs) and concessions of public services in Brazil

Abstract

This paper examines the current regulation of public-private partnerships (PPPs) and concessions of public services in Brazil. Under the Brazilian Constitution, certain public utility services and infrastructure works must be provided or built either directly by the government or through a government franchise. Such franchise takes the form of either concessions or PPPs. The difference between the two is based on the form of government contribution. PPPs are concessions in which part or all of the concessionaire’s compensation is paid by the government and does not come directly from the revenue gained through the service or work at issue. These contractual arrangements are available and actually employed throughout all government levels in Brazil. Most of the government activity in these areas in the past 20 years has adopted a concession or PPP format. By analyzing the main features of the Brazilian concession and PPP system, this paper aims to offer the international reader an introductory view of the legal framework behind most large-scale investments in Brazilian infrastructure.