Felipe Montoro Jens, a specialist in infrastructure development reports that data from the CNI indicates that according to Brazil’s ministry of planning the country has 2,796 paralyzed works. 517 out of the 2,796 works are directly related to the infrastructure sector. This number is equal to 18.5 of the affected works and accounts for over R $10.7 billion from the public finances. Visit on his twitter account for latest update
One of the main affected sectors is basic sanitation. Around 447 enterprises became interrupted during their implementation phase. The rest of the projects affected include 30 highways, 16 airports, 8 urban mobility works, 6 ports, 5 waterways and 5 railways.
According to Felipe Montoro Jens, Brazil invests an estimated 2% of the GDP towards developing infrastructure. He believes that the country plays a major role in the failure of some of the projects. This is mainly because the interruptions result in the consumption of more resources without benefiting the society or offering anything in return. This is a failure that can be blamed on the means of handling resources by the public sector.
Another concern by Felipe Montoro Jens is how cheap projects like sports facilities, preschools and daycares were affected according to the CNI data. According to the CNI study, the reasons behind some f these projects getting interrupted includes technical problems, financial difficulties, misappropriation of funds and abandonment of work by companies.
There is a great need for Brazil to limit spending due to the current economic crisis. This is the main reason behind the interruption of many projects according to Felipe Montoro Jens. Strained relationships between public managers in charge of the projects and control bodies are also another contributing factor towards interruption of projects. Six measures can be put in place in order to overcome the existing conditions. This includes designing balanced contracts, better equipping of teams, improving macro planning, designing balanced contracts, evaluation of appropriate modalities and strengthening internal control.
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