The aim of this section is to present some basic aid to the reader concerned on the topic of PPPs. The section is meant to be just a start on the subject. In case of doubts, criticisms or suggestions for topics, please contact us.
Administrative concession is one of the forms of Public-Private Partnership, concerning to the context of general interest service to be provided by the private partner, which will be not possible or convenient to charge user fees for these service. In such case, the reward of the private partner is overall from regular inflows of budgetary funds from the public sector which the contract of concession has been signed.
The Public-Private Partnership is considered one of the main instruments used by the Brazilian State to attract investments in infrastructure. Through one PPP, the Union, the States and the Municipalities may draft and contract private companies which will offer public benefits on a fixed term.
Regular concession is a form of Public-Private Partnership in which the private partner investments to provide Public service are paid by the user fees.
Inother words, the user fees reward directly private partner investments. Systematic budgetary contributions are not request from the Public sector.
Sponsored concession is one form of Public-Private Partnership which user fees are not sufficient to offset the investments made by the private partner.
Thus, the government, in addition to the user fees, complements the private partner award through systematic budget funds (public installments).
