As France and Brazil share similarities in terms of PPP regulation, a cooperation programme has been developed to support the governance of public-private partnerships in municipalities.
The programme to support the governance of PPPs has been set up to work on 4 priority sectors selected by the Brazilian authorities.
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What is a PPP?
A PPP is a public procurement tool that allows a public entity to entrust the construction of infrastructure or the management of a service to a private company. It is a long-term contract that assigns an overall mandate to a company for the prefinancing, construction, operation and maintenance of a public service facility.
There are two main types of PPP:
• Partnership contracts: the private partner is remunerated by the public entity.
• Concessions: the remuneration mainly comes from the contribution of users.
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A project with four components
The objective of this technical assistance is to share good practices for the oversight and regulation of public-private partnership projects in order to help Brazilian local authorities create high-quality infrastructure and public services with support from the private sector.
Four areas of action have been identified:
• An area of institutional cooperation to develop the guidelines and general mechanisms required for the implementation of PPP projects by local authorities.
• An area of technical cooperation on training and feedback on experience. Study visits and technical training will be organised in this context.
• An area dedicated to the development of the regulatory framework for waste PPPs, which will identify good practices, Brazilian and international experience in solid waste management and establish standard regulation models.
• An area of assistance for the implementation of pilot projects. The objective is to help structure projects up to the conclusion of their contracts.
This assistance is provided through exchanges of expertise, the organisation of seminars and training and mentoring for the teams responsible for setting up projects.
Project stakeholders
This cooperation is coordinated by the Special Secretariat of the Investment Partnerships Programme (SPPI), in partnership with the Ministry of Regional Development, and is implemented by Caixa Econômica Federal (Caixa).
On the French side, the cooperation is led by Agence Française de Développement (AFD) and implemented by Expertise France, the French international technical cooperation agency.
