Érica Ferreira De Andrade
Master's – Agency Theory and PPP Contract of Highway MG-050
Advisor: Profª. Drª. Maria Sylvia Macchione Saes
Comission: Profs. Drs. Roberta de Castro Souza Piao, Adriana Marotti de Mello and José Paulo de Souza
Class: 217, FEA-5
The contractual modeling of Public-Private Partnerships has increased in the world's major economies, mainly on the recommendation of the World Bank that organizes studies and manuals on the subject in order to standardize the concept. This issue raises the question on the constraints of agency problems in a Public-Private Partnership, thought in terms of capture, asymmetry of information and institutional design. This research has the general objective to discuss the Agency Theory based on the institutional design of this partnership. The specific objective is to operationalize the concept of PPP in Brazil, according to the federal and state legislations on the subject; the differences from other traditionally used contracting and investment models; the capacity of the installed institutions, their hysteresis or resilience to this contractual modeling; bring the historical context to the present, considering the democratic parameter of transparency and accountability; and thus interpret how the Agency Theory can illuminate the results of these partnerships. As a theoretical framework, we present the critical evolution of theories of regulation, the Principal-Agent problem and the institutionalist approach to sectoral economic regulation. The following is the evolution of the regulation of PPP concessions in Brazil. Finally, a case study of Highway MG-050 is carried out in light of the Agency Theory. As a result, the research presents propositions about what the contracting of public services of the Public-Private Partnership type generates to the democratic challenges of transparency, accountability and enlargement of citizenship; what this type of contracting generates for market failures; and on the capacity of the State in this type of modeling, both by the need of a state planner for these projects, and by the demand of a guarantor State.
*Abstract provided by the author