Codevasf

Posted: 12 Apr 2012

See all articles by David E. Bell

David E. Bell

Harvard Business School - Marketing Unit

Marcos Fava Neves

University of Sao Paulo (USP) - Business Administration

Luciano Thomé Castro

affiliation not provided to SSRN

Natalie Kindred

Harvard Business School

Date Written: May 6, 2010

Abstract

With many countries facing scarcity of freshwater and farmable land, Brazil decided to leverage its wealth of both resources to attract global agribusiness players to the historically poor Sao Francisco Valley (SFV) in the country's northeast. To do so, Brazil was instituting its first public-private partnership (PPP) in irrigation at Pontal, a partially built irrigation project in the SFV. In exchange for partial reimbursement from the Brazilian government and free use of 30,000 hectares land for 25 years, the private-sector partner would finish constructing the irrigation infrastructure and establish agricultural operations on the project; the partner was also required to integrate some local smallholders into the production chain. In December 2009, Codevasf was almost ready to start accepting bids for Pontal. For Clementino de Souza Coelho, director of infrastructure for Codevasf, the stakes were high: if successful at Pontal, PPPs could be replicated throughout the SFV, transforming the historically poor region into an agribusiness hub, as well as be a model for the rest of the world.

Learning Objective: To understand complexities of water usage by agriculture.

Suggested Citation

Bell, David E. and Fava Neves, Marcos and Castro, Luciano Thomé and Kindred, Natalie, Codevasf (May 6, 2010). Harvard Business School Marketing Unit Case No. 510-042. Available at SSRN: https://ssrn.com/abstract=2037831

David E. Bell (Contact Author)

Harvard Business School - Marketing Unit ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-6366 (Phone)

Marcos Fava Neves

University of Sao Paulo (USP) - Business Administration ( email )

FEARP Av dos Bandeirantes 3900
Ribeirao Preto, Sao Paulo, 14020-740
Brazil
55-16-6023892 (Phone)

Luciano Thomé Castro

affiliation not provided to SSRN ( email )

Natalie Kindred

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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