Image: Transparency in Public Private Partnerships: the case of Minas Gerais

Image: Is Transparency helpful to governments Transparency in Public Private Partnerships: the case of Minas Gerais ?

1.PPPs in Brasil 2.PPPs and Transparency in Brasil 3.The transparency policy in Minas Gerais 4.What did we learn Image: Transparency in Public Private Partnerships: the case of Minas Gerais

Investment of PPP projects accumulated in Brazil (US$Bilion) Source: PPI Data-Base

PPP contracts signed per year in Brazil Source: Radar PPP ( 76 contracts signed

PPP project initiated per year in Brazil Source: Radar PPP ( 394 projects were announced

Brazil has experienced a sustained growth of private participation in infrastructure over the last 2 decades ! Source: Radar PPP (

The Brazilian approach to transparency… 1. Identific. 2. Prepara 3. Bidding 4. Manag.

The Brazilian approach to transparency… 1. Identific. 2. Prepara 3. Bidding 4. Manag. Projects are required to be included in PPP plans, published in newspapers, as soon as they are selected (name of projects only). The unsolicited proposals, when accepted, are immediately announced in the newspapers (name of the project only) Projects are required to be included in PPP plans, published in newspapers, as soon as they are selected (name of projects only). The unsolicited proposals, when accepted, are immediately announced in the newspapers (name of the project only)

The Brazilian approach to transparency… 1. Identific. 2. Prepara. 3. Bidding 4. Manag.

The Brazilian approach to transparency… 1. Identific. 2. Prepara. 3. Bidding 4. Manag. Scarce regulation on transparency in most of this stage! Need to a public consultation of the draft of the bidding package Federal level: the evaluation by Court of Auditors is mandatory Scarce regulation on transparency in most of this stage! Need to a public consultation of the draft of the bidding package Federal level: the evaluation by Court of Auditors is mandatory

The Brazilian approach to transparency… 1. Identific. 2. Prepara. 3. Bidding 4. Manag. Full RFP + RFQ published (typically on-line) and at least 45 days prior to the delivery of proposals Communications with bidders are disclosed on- line Unredacted contract disclosed as an appendix of RFP Full content of proposals are reactively published (no commercial secrecy legally allowed) Full RFP + RFQ published (typically on-line) and at least 45 days prior to the delivery of proposals Communications with bidders are disclosed on- line Unredacted contract disclosed as an appendix of RFP Full content of proposals are reactively published (no commercial secrecy legally allowed)

The Brazilian approach to transparency… 1. Identific. 2. Prepara. 3. Bidding 4. Manag. Content of amendments (and renegotiations) do not need to be proactively published Contract performance are not dealt with in the regulations, and generally not disclosed SPV’s financial does not need to be proactively disclosed Fiscal commitments are disclosed for the following 10 years Content of amendments (and renegotiations) do not need to be proactively published Contract performance are not dealt with in the regulations, and generally not disclosed SPV’s financial does not need to be proactively disclosed Fiscal commitments are disclosed for the following 10 years

The Brazilian approach to transparency… 1. Identific. 2. Prepara. 3. Bidding 4. Manag. All procurement documents are public contract draft to be disclosed with the RFP No commercial secrecy protection in allowed for proposals 10 Year Projection of direct liabilities are disclosed + + The actual signed contract is only disclosed reactively Project decisions are not observable Amendments are not known Contingent liabilities are a mystery - -

The transparency policy on Minas Gerais Minas Gerais

The transparency policy on Minas Gerais Maintain proactive disclosure policy (e.g. maintaining project and program hot sites) of all the information produced Full, unredacted disclosure of programs and projects (contracts, amendments, regulatory decisions, performance reports etc.) Recognition of different needs of different audiences

1. Identific. 2. Prepara. 3. Bidding 4. Manag. The transparency policy on Minas Gerais Project descriptions and available data proactively published (e.g estimated CAPEX)

1. Identific. 2. Prepara. 3. Bidding 4. Manag. The transparency policy on Minas Gerais All feasibility analysis fully published along the way

1. Identific. 2. Prepara. 3. Bidding 4. Manag. The transparency policy on Minas Gerais Contract amendments proactively published on-line Performance reports proactively published on-line Project summaries produced and proactively published Contract amendments proactively published on-line Performance reports proactively published on-line Project summaries produced and proactively published

The transparency policy on Minas Gerais

Full time employeeIndividual visitors ( two months – google analythics report ) Contracts liabilities Performance

The transparency policy on Minas Gerais Minas Gerais did not disclose – Contracts between private parties (except financial agreements) – Personal data of the SPV managers – Financial data of SPV before its official financial reporting to regulators

The transparency policy on Minas Gerais Several issues arose during the adoption of disclosure – Claims to protect commercial secrecy – Claims (by agencies) about loosing control of information – Information used to criticize the PPP program

Obtain feed back about the capacity of the project to solve the problem Project Identification Assess the Commercial Feasibility Introduce Competitive pressure during procurement Project Preparation Induce a competitive procurement Produce a leveled playing field Procurement Help to enforce private sector performance Creates contractual stability Contract Management We learned that transparency, in each phase of the project cycle, helped the government to: The transparency policy on Minas Gerais Value for Money

Is Transparency helpful to governments When transparency is important?

“YES!” Is Transparency helpful to governments

Transparency creates value for several stakeholders of the PPP project cycle Disclosure Governments Users Private sector When transparency is important?

Thank you