President Jair Bolsonaro ratified a law on Thursday creating a fund to facilitate the structuring of federal, state, and municipal government concessions and public-private partnership projects.
The legislation — which originates from a provisional decree issued by the government in May — aims to speed up the process of transferring infrastructure projects to the private sector, currently handled only by the Caixa Econômica Federal bank and the Brazilian Development Bank (BNDES). According to the Regional Development Ministry, every BRL 1 billion (USD 180 million) allocated to project structuring could leverage another BRL 100 billion in private investment.
The fund sanctioned by Mr. Bolsonaro will be created using funds currently available from restructuring the Infrastructure Guarantee Fund (FGIE), worth BRL 750 million.
Its focus will be to finance the structuring of public-private partnerships in priority areas, such as public lighting, basic sanitation, and urban mobility. In addition, according to the ministry, the Northeast, North, and Center-West regions will have priority when accessing the fund.