Private capital is important for Brazil's infrastructure, says IBRE

Faced with the recent announcements on privatization auctions of some major airports in Brazil, the researcher in the field of Applied Economics of the Brazilian Institute of Economics (FGV/IBRE), Maurício Canêdo, analyzed the issue for the institute's website.According to Maurício, this shows that the federal government convinced itself that it would not be able to provide the necessary infrastructure by itself - including ports, railways and roads - to Brazil. It was a taboo in the past and the government has accepted to share the investments with the private sector. It may not be optimal - Infraero will continue with a 49% ownership in airports, for example - but the progress is undeniable. The fact that the government has agreed to make these concessions indicates that it realized the importance of private capital for infrastructure production, he stated.The researcher also points out that investments in Brazilian airports represent a large portion of foreign interests, and that there are great expectations over the practical consequences that passengers will experience. He also believes that railroads tend to be the next focus of public bids. Please read here the full analysis by Maurício Canêdo. (avaiable in Portuguese).








