Felipe Montoro Jens reports on a CNI study of public projects on-hold in Brazil

Infrastructure expert Felipe Montoro Jens reports that a study, “Uncompleted large-scale projects: how to face the problem”, by the National Confederation of Industry (CNI), based on 2017 year-end data by the Ministry of Planning, shows 2,796 public projects are on hold in Brazil. 517 of those, or 18.5%, are infrastructure-related, with a cost to the public about R$10.7 billion.

447 of these are basic sanitation projects, followed by 30 highways, 16 airports, 8 urban mobility projects, 6 ports, 5 railways and 5 waterways.

The study also shows that a significant cost to society is a coherent method of execution by the public sector. Brazil loses a significant amount of the 2% Gross Domestic Product (GDP) it allocates to public projects in projects scuttled before they’re green-lighted, resulting in wasted time and work. Read more about Montoro Jens at baptista.com

Technical problems, land ownership, projects abandoned by the companies themselves, financial and budgetary difficulties and expropriation are the main causes in the report.

First among those, says National Confederation of Industry infrastructure specialist, Ilana Ferreira, are technical problems. “These are poor-quality projects that indicate poor planning,” she said. “In the case of schools and nurseries, many small companies took over and couldn’t carry on, given the economic crisis.”

Brazil continues to cut spending, due to the on-going economic crisis, which means more cancellation of important infrastructure projects, says specialist Felipe Montoro Jens. “Although more evident at a national level, this process of fiscal deterioration and contraction of investments has also affected state and municipal projects, which ended up cutting funds, also leading to the stoppage of infrastructure works”.

Felipe Montoro Jens points out that construction for education, including day-care centers, preschools and schools sports facilities, though less costly and not as difficult to build, is nevertheless also a part of the CNI report.

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