Impact of Concessions on Service Delivery

 

Following an announcement, the Brazilian government will make concessions through a partnership with The National Bank for Economic and Social Development (BNDES). The president of Trata Brasil, Edison Carlos, said in an interview that the initiative will undergo improvements in management, structural and resource departments. Trata Brasil provides services that act on basic sanitation.

 

Another aspect raised by Mr. Felipe Montoro Jens, an infrastructure expert, focused on the decrease in levels of waste. Edison indicated that 90% of the basic sanitation services are carried out by the general public whereby 70% of the users are served by state organizations. According to him, integrating the private-public partnership will provide better services if they complement each other.

 

Edison further explained that BNDES will come up with customized action plans based on surveys in the specified localities and modify the project according to the needs of each region. Mr. Felipe pointed out that loss of water was the main cause of the flow of financial resources from government-owned organizations in the sector. Therefore service delivery is a challenge due to wastage.

 

Private VS Public Sectors

 

According to Trata’s president:

  • The private enterprise has more resources and this is important in minimizing wastage.
  • Private companies have advanced technology which is crucial in water management and improving investments in sewage networks.
  • Better management in the private sector has the required rigor and therefore has better financial capabilities.

 

The partnership will, therefore, improve the impact of service delivery in public institutions. However, Edison categorically states that an organization’s efficiency is not classified entirely by its administration but existence of an alignment between mode of operation and the needs of the citizens.

 

Felipe Montoro Jens

Mr. Felipe Montoro Jens serves as the CEO of Energipar Captação S.A. He is a specialist in infrastructure projects and a successful investor in the Brazilian real estate market. Felipe holds an undergraduate degree in business administration from Fundao Getlio Vargas (FGV) and a master’s degree in international management from Thunderbird, The American School of International Management in the USA.

 

He has spearheaded many projects in several companies serving in the top-rank management. For instance, Felipe has worked in the project development and structured finance area at Terna S.p.A. (Enel Group). He has also served in the auditing and consulting divisions of PricewaterhouseCoopers as well as in the international structured finance division at Enron. http://www.radaroficial.com.br/d/28075923