In this month of August, the Brazilian government announced the reestablishment of the Growth Acceleration Plan (PAC-3), encompassing a series of initiatives aimed at fostering investment in various sectors of the Brazilian economy over the coming years.
The PAC-3 foresees investments totaling BRL 1.4 trillion by 2026 in segments such as transportation, social infrastructure, sustainable cities, basic sanitation, digital inclusion, energy, defense, health, as well as education, science, and technology.
Similar to previous editions of the program, the PAC-3 positions the State as the primary agent driving the country’s economic growth – particularly through cooperation with private entities.
In this regard, two main aspects of the program deserve highlighting: partnerships with the private sector and the utilization of the State’s purchasing power.
Partnerships with the private sector
Brazilian legislation encompasses various forms of cooperation and association between the public and private sectors. The PAC-3 focuses on common concessions (Law No. 8,987/1995) and public-private partnerships (Law No. 11,079/2004) for the implementation of projects that constitute the program.
In common concessions, the concessionaire assumes the administration of the asset, taking responsibility for operating the respective service and being remunerated solely through user fees.
In public-private partnerships, on the other hand, the public partner (grantor) makes contributions in favor of the concessionaire – with user fees possibly being charged, except in cases of administrative concession.
In the PAC-3, partnerships with the private sector are aimed, among other objectives, at enabling projects in the areas of ports (maritime and inland waterways), urban mobility, highways, forest management, and rural sanitation.
State purchasing power
The procurement of products and services by the direct Public Administration is typically conducted through a bidding process (Law No. 14,133/2021). When allowed by the law, this process can be waived or even considered inapplicable.
The current procurement law – as well as the previous one (Law No. 8,666/1993) – provides the possibility of granting preference margins for national products and services, environmentally sustainable goods and services, or those resulting from technological innovation. During the first two versions of the PAC, the Brazilian government made use of this prerogative. The PAC-3 now returns with this more protective orientation.
The PAC law (Law No. 11,578/2007) also allows for the possibility that bidding notices require the contracted party to acquire certain products and services produced or provided domestically (national content policy).
The products and services that may benefit from preference margins or that may be covered by the national content policy will be proposed by the CIIA-PAC (Decree No. 11,630/2023).