SOUTH AMERICA

New port infrastructure fund proposed for Brazil

10 years ago

Brazils House of Representatives is analysing draft legislation put forward that would introduce a new Port Infrastructure Investment Fund. The proposal aims to fund at least 50% of the infrastructure linked to port tenders and port facilities that are put out to concession.

According to the draft, by means of the fund, port authorities would oversee the management of grants and other revenue sources targeted at infrastructure projects.

Another element of the legislation would be to establish that one of the main ways to assess a bid would be through the highest value of the award. This would amend an earlier law, passed in 2013, which mandates that other criteria should be considered more important when looking at infrastructure funding, namely, the largest handling capacity, the lowest tariff and the quickest time for moving cargo.

The author of the bill wants to implement changes, arguing that funds raised by the government through such things as concessions and port leases can sustain the investment needed to develop Brazilian port infrastructure.