Juliana Andrade and Keite Kamarcho
Reporters - Agência Brasil

Brasília - Thursday (30), President Luiz Inácio Lula da Silva authorized the law creating Public-Private Partnerships (PPP's). The project establishes general rules for private firms to undertake projects in conjunction with the government. The idea is to make it possible to invest money in infrastructure (telecommunications, transportation, energy, etc.) The law also sets a minimum period of five years and a maximum of thirty for the execution of partnership contracts with a minimum investment of US$ 7.5 million (R$ 20 million).

Each contract must have at least 30% of private capital, with 70% left over for the Federal Government. The choice of investments will be carried out through auctions.

According to the vice-president of the Brazilian Association of Infrastructure and Basic Industries, Manoel Ribeiro Filho, the PPP's will add jobs both in the execution phase and afterwards. He explained that the infrastructure projects will represent a gain for the country in terms of export capacity.

Translation: David Silberstein