Caixa predicts 28 auctions of concession projects and public-private partnerships in 2023

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Caixa Econômica Federal plans to hold 28 auctions of concession projects and PPPs (public-private partnerships) in 2023. The expectation is to generate R$ 12 billion in private investments in infrastructure, mainly in the public lighting and basic sanitation sectors.

To increase the attractiveness and boost the structuring of projects for PPPs in the public lighting sector, Caixa promoted changes in the public notice launched in September, improving the requirements of the previous public call.

Municipalities interested in having projects developed by the bank no longer need to pay 10% of the structuring cost, which will fall entirely on the FEP (Support Fund for the Structuring of Concession Projects and PPPs). Today, the fund adds up to R$ 180 million in resources, continuously recomposed by the private companies that won the auctions.

In this public notice, inter-municipal consortia (between two and 30 municipalities) can apply, provided they have at least 100,000 inhabitants. In the case of isolated municipalities, it is necessary to have more than 80 thousand inhabitants. Caixa estimates that 517 entities meet these requirements. Applications are open until November 11.

Until last Wednesday (26), 12 consortia were registered in the public call, encompassing 139 municipalities, and 40 isolated municipalities. The bank expects to reach at least 100 projects. The release of results is scheduled for December 23 for the municipalities and for January 23, 2023 for the consortia.

This is the first public notice since the partnership between Caixa and the BNDES (National Bank for Economic and Social Development) and the Special Secretariat of the Investment Partnerships Program of the Ministry of Economy was closed.

The structuring of a PPP project goes through four stages, from the feasibility analysis of the project to the bidding and contracting. On average, there are 14 months between the kick-off meeting and the project auction.

Caixa currently has 57 concession structuring projects in its portfolio, 37 of which in public lighting and 15 in basic sanitation, with R$ 21.1 billion in private investments. The proposals impact 21.2 million inhabitants in 205 municipalities.

Of the total, 12 projects have already been auctioned, with an investment of R$ 3.16 billion, and three will be put up for auction later this year.

In November, public lighting PPP auctions are planned for the municipalities of Nova Lima (MG) and Barreiras (BA), with investments estimated at R$58 million and R$56 million, respectively. The duration of the contracts is 13 years.

Also scheduled, on December 15, is the auction of the second concession for solid waste management structured for the Comares consortium, which includes nine municipalities in Ceará and covers 354,000 inhabitants. The expected investment is R$ 814 million.

Next year, Caixa also wants to expand its infra-social projects. It is currently developing a pilot aimed at early childhood education in Santa Catarina, in which the private partner must complete works in day care centers and is in charge of asset management, security and building maintenance.

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