Alckmin presents investment potentials in the State of São Paulo

Governor Geraldo Alckmin presented investment possibilities in the State of São Paulo during a meeting with North-American executives and investors. The meeting was held this Wednesday, May the 13th, in the Harvard Club, in New York, and highlighted the business opportunities in public-private partnerships (PPP).

“We’ll overcome Brazil’s current moment with investments, development and productivity. The State of São Paulo has several PPP opportunities in infrastructure, sanitation, habitation, technology and health areas. Those are important opportunities from the economic point of view because they generate work posts and revenues”, Alckmin highlighted while stressing that São Paulo is a great customer centre.

The presentation showed the evolution of the State’s GDP since 2002: accordingly to IBGE (Brazilian Institute of Geography and Statistics) and the Seade Foundation, in that year São Paulo registered a GDP of US$ 179.1 billion while, in 2014, the value rose to US$ 534 billion. Alckmin informed that the surplus of the state in 2014 was equivalent to R$ 4.589 billion, while many Brazilian states registered a deficit in their public finances.

The three main credit risk agencies – Fitch, Moody’s and Standard & Poor’s – assess the state with a “investment degree” due to its solid records of balanced financial performance, sustained by severe tributary policies. The assessments indicate that the State has a great control and management of its debts and an increasing level of investments, something crucial to its future economic development. From 2003 to 2014, the total investments of the public sector grew from R$ 4.4 billion to R$ 23.5 billion.

Public-Private Partnership businesses

Alckmin also presented the total value that has already been invested since the beginning of the Concessions Program, which includes R$ 71.3 billion in roads concessions, R$ 7.3 billion in distribution of gas and R$ 14.9 billion referring to the State Program of PPPs.

Those partnerships between the public and private sectors include works such as the Line 4 of the Subway of São Paulo, the first subway line in Brazil, which is operated through a PPP: the construction is under the state’s responsibility and the operation and maintenance are a duty of the Concessionary ViaQuatro for 30 years. The lines 6-Orange and 18-Bronze of the subway are also PPP. Another important public-private partnership is the System São Lourenco, which will provide more than 6.4 cubic metres of water per second to the Metropolitan Region of São Paulo in 2017.

In order to reduce the habitation deficit of the capital, the state, through a partnership with the private sector, will construct 3.683 houses, being 2.260 of them settled for social interest and the other 1.423 settled for the social market.
Health is also benefitted with PPPs. There will be three hospitals: one in São Paulo, another one in Sorocaba and the last one in São José dos Campos. Another investment possibility is the Trem Intercidades (Train Intercities), a sponsored concession for the implementation, operation and maintenance of an integrated network of roughly 431 kilometres of train lines connecting the main metropolitan regions of the state.

Fonte:  Governo de S. Paulo