Jeferson Brás de Lima
Master's – Sanitation and value for money in brazilian public-private partnerships
Advisor: Prof. Dr. Nuno Manoel Martins Dias Fouto
Comission: Prof. Drs. Frederico Araujo Turolla, Alessandro Ranulfo Lima Nery and Flávio Hourneaux Junior
Class: 217, FEA-5
Considered a strategic area for investments in infrastructure due to its potential for generating revenue in various segments and mitigating regional differences, the Brazilian sanitation sector has been neglected for several years. Currently, 20% of the population still had no access to water supply and 40% had no access to sewage, with these numbers varying between states.
To boost investments in the sector, the presence of private companies in the sector through concessions and partnerships has been gaining strength and support from municipalities. However, the strong presence of state companies and an unequal competition model have slowed private expansion in sanitation. To show that private participation can be of interest to the State and society, the Value for Money tool is used in several countries to demonstrate whether there is a value creation in private procurement in the face of a purely public initiative.
Based on a case study in the municipality of Atibaia (São Paulo), this paper aimed to understand how this tool was applied to the local PPP in sewage disposal.
The construction of VfM was focused on subjective rather than objective characteristics, lacking financial studies that really showed the prevalence of private investment over the public. What is perceived is the importance of sanitation for the municipality and a quick solution of a problem, without looking at the future costs of this partnership, creating some conflicts of interest and the need for negotiations of financial rebalances to maintain the PPP.
*Abstract provided by the author