Infrastructure Services in Brazil: The Role of Public-Private Partnership (PPP) in the Water & Sewerage Sector

19 Pages Posted: 9 Nov 2004

See all articles by Frederico Araujo Turolla

Frederico Araujo Turolla

Independent

Tomas Anker

Sao Paulo School of Economics (EESP-FGV)

Ricardo Meirelles de Faria

Sao Paulo School of Economics (EESP-FGV)

Date Written: November 5, 2004

Abstract

Managing water and sanitation services involves a complex task due to the characteristics of the public goods which are involved. The large amount of capital requirements in their very specific forms creates the structure of natural monopolies which require either public operation or strong regulation on private sector operators. The long maturity of the projects involved in conjunction with the diverse risks shared in a regulated industry causes an undersupply of investments in such public utility services. Creative contractual arrangements between public and private sector are key for boosting formation of fixed capital. This paper discusses the new possibilities of investment that emerged for the water and sewerage industry in Brazil with the new legislation of the public-private partnerships (PPP) in discussion at the National Congress.

Keywords: Public services, water and sewerage. sanitation. Public-Private Partnerships (PPP)

JEL Classification: H42, L52, L95

Suggested Citation

Araujo Turolla, Frederico and Anker, Tomas and de Faria, Ricardo Meirelles, Infrastructure Services in Brazil: The Role of Public-Private Partnership (PPP) in the Water & Sewerage Sector (November 5, 2004). Available at SSRN: https://ssrn.com/abstract=616241 or http://dx.doi.org/10.2139/ssrn.616241

Frederico Araujo Turolla (Contact Author)

Independent ( email )

No Address Available

Tomas Anker

Sao Paulo School of Economics (EESP-FGV) ( email )

Av. Nove de Julho 2029 - 11 andar
Sao Paulo SP 01313-902
Brazil

Ricardo Meirelles De Faria

Sao Paulo School of Economics (EESP-FGV) ( email )

Av. Nove de Julho 2029 - 11 andar
Sao Paulo SP 01313-902
Brazil

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