The Brazilian government announced that it will be creating a more complementary partnership between the public and private sectors for sanitation reform, local business leader Felipe Montoro Jens reported.
By creating concessions for conducting basic sanitation business, the two sides hope to establish a partnership that will leverage the government experience and scope with the higher levels of technology and resources found in the private sector.
Felipe Montoro Jens said he believes that the partnership will create improvements for managing the trash disposal, structural issues within the current system, and help spread resources to more areas. Right now, Edison Carlos, the Tratas Brasil president, said there is a lot of waste which sends resources away from helping people and getting the job done. Water, for example, was often unavailable because the state water sector did not appropriately budget their financial resources.
Basic sanitation in Brazil is 90 percent public and 70 percent of users are served by state organizations. By leveraging the experience and connections of the government sanitation contacts with the private initiatives with better technology and more resources, the public wins. BNDES plans to develop action plans for each state based on their list of needs and situations. Then the bank can customize the response and projects to the needs of each place.
While concessions are a good way for the government to update sanitation needs around the country, Edison Carlos said that the two sides need to create clear cut goals when writing their contracts.
Felipe Montoro Jens is a major business leader at several companies in Brazil. He serves on a board of directors overseeing the concessions being given out by the Central Authority.
He has many years of business experience in Brazil. Before that he was educated at Getulio Vargas Foundation and also holds a graduate degree from the Thunderbird School of Global Management.