Government studies exemption of PPPs in social areas – 04/12/2023 – Market

The Minister of the Civil House, Rui Costa, said this Wednesday (12) that the government is studying to relieve concessions and PPPs (public-private partnerships) in social areas.

“We are discussing with the Treasury the exemption of these concessions, PPPs, mainly with a more social nature, urban mobility, transport, health, education. and makes the application of these resources more efficient, effective”, he said during the Abdib (Brazilian Association of Infrastructure and Basic Industries) forum.

According to the minister, the Civil House is in dialogue with the Ministry of Finance to evaluate this measure.

A Sheet learned that talks began last week and that the government is in the process of surveying all PPPs in the states to better assess the scenario.

The change could be made by MP (provisional measure) or in the bill of concessions in the Senate.

“It makes no sense to tax, encumber, take money from the SUS [Sistema Único de Saúde] to come to the single treasury and finance other areas”, defended Costa.

According to the minister, in Bahia, the state where he was governor, there are three PPPs in the health area. Among all public-private partnerships in the state, these are the highest rated, he said.

“It does not seem appropriate for you to withdraw money from the SUS to finance other areas of government, because that is what it is about. When you tax public health services, you are taking money [que é] 100% SUS to finance other State actions and even other Powers besides the Executive”, said the minister to journalists after participating in the event.

In his speeches, the minister usually emphasizes the importance of PPPs. In the case of the decree to revise the sanitation framework, in early April, a lock was removed that established a limit of 25% of the contract value of state-owned companies to close partnerships with the private sector in the model of public-private partnerships.

The signing of the decrees took place in a ceremony at the Planalto Palace. At the event, President Luiz Inácio Lula da Silva (PT) defended the changes, stated that the sanitation problem in Brazil is chronic and asked for a vote of confidence in public companies in the area.

The government’s texts left a loophole for state companies to provide services without bidding.

One of the most controversial points of the revision of the framework is precisely the possibility of direct provision of services by the state-owned company in metropolitan regions, urban agglomerations or micro-regions (subdivision of the state area).

This measure was anticipated by Sheet at the end of March. Government technicians argue that, in these cases of groupings, the state can be considered the holder of the service, as well as the municipality. Thus, state companies could provide sanitation services without bidding.