Road-Network Development in Quickly Growing Economies: Brazilian Case Study MG-050
Publication: Journal of Infrastructure Systems
Volume 21, Issue 4
Abstract
Governments throughout the world have been actively engaging in public–private partnership (PPP) arrangements to upgrade and develop their road networks. The transportation sector and particularly the road sector has remarkably increased its use of PPP arrangements for building, upgrading, operating, and financing these investments due to a shortage of public spending, which is necessary to satisfy infrastructure needs of growing economies. Fast-growing economies, such as Brazil, are facing bottlenecks in their economic development due to a lack of proper transportation infrastructures. This paper discusses the use of PPP contracts in the road sector, focusing the analysis on the Brazilian case study MG-050. This road was the first PPP project in the road sector in Minas Gerais (Brazil) during the recent so-called PPP wave and can provide valuable lessons for future development of road projects, not only in Brazil but also in other fast-growing economies, such as sub-Saharan Africa, the Middle East, or Southeast Asia countries.
Get full access to this article
View all available purchase options and get full access to this article.
References
Bartholomeu, D. B., and Filho, J. V. C. (2009). “Quantification of the environmental impacts of roads conditions in Brazil.” Eco Econ., 68(6), 1778–1786.
Batley, R. (1996). “Public-private relationships and performance in service provision.” Urban Stud., 33(4–5), 723–752.
Bel, G., Brown, T., and Marques, R. C. (2013). “Local public-private partnership: Lessons from Europe and United States.” Local Govern. Stud., 39(3), 303–311.
Bettignies, J., and Ross, T. (2009). “Public-private partnerships and the privatization of the finance function: An incomplete contracts approach.” Int. J. Ind. Organ., 27(3), 358–368.
Cruz, C. O., and Marques, R. C. (2011). “Contribution to the study of PPP arrangements in airport development, management and operation.” Transp. Pol., 18(2), 392–400.
Cruz, C. O., and Marques, R. C. (2013a). Infrastructure public-private partnerships: Decision, management and development, Springer, New York.
Cruz, C. O., and Marques, R. C. (2013b). “Exogenous determinants for renegotiating public infrastructure.” J. Constr. Eng. Manage., 1082–1090.
Cruz, C. O., and Marques, R. C. (2013c). “Theoretical considerations on quantitative PPP viability analysis.” J. Manage. Eng., 122–126.
Cruz, C. O., and Marques, R. C. (2013d). “Using the economic and financial reequilibrium model to decrease infrastructure contract incompleteness.” J. Infrastruct. Syst., 58–66.
da Cruz, N. F., and Marques, R. C. (2013). “New development: The challenges of designing municipal governance indicators.” Public Money Manage., 33(3), 209–212.
El-Gohari, N. M., Osman, H., and El-Diraby, T. E. (2006). “Stakeholder management for public private partnerships.” Int. J. Project Manage., 24(7), 595–604.
E. Engel, R. Fischer, and A. Galetovic (2006). “Renegotiation without holdup: Anticipating spending and infrastructure concessions.”, National Bureau of Economic Research (NBER), Cambridge, MA.
E. Engel, R. Fischer, and A. Galetovic (2009). “Soft budgets and renegotiations in public-private partnerships.”, National Bureau of Economic Research (NBER), Cambridge, MA.
Esfahani, H. S., and Ramirez, M. T. (2003). “Institutions, infrastructure, and economic growth.” J. Dev. Econ., 70(2), 443–477.
Fairbanks, J., and Plowman, K. D. (2007). “Transparency in government communication.” J. Public Affairs, 7(1), 23–37.
Flyvbjerg, B., Holm, M. K. S., and Buhl, S. L. (2004). “How common and how large are cost overruns in transport infrastructure projects?” Transp. Rev., 23(1), 71–88.
Fookes, P. G., Sweeneya, M., Manbya, C. N. D., and Martina, R. P. (1985). “Geological and geotechnical engineering aspects of low-cost roads in mountainous terrain.” Eng. Geol., 21(1–2), 1–14.
Grimsey, D., and Lewis, M. K. (2002). “Evaluating risks of public private partnerships for infrastructure projects.” Int. J. Project Manage., 20(2), 107–118.
Grimsey, D., and Lewis, M. K. (2005). “Are public private partnerships value for money? Evaluating alternative approaches and comparing academic and practitioner views.” Acc. Forum, 29(4), 345–378.
Guasch, J. L., Laffont, J., and Straub, S. (2007). “Concessions of infrastructure in Latin America: Government-led renegotiation.” J. Appl. Econ., 22(7), 1267–1294.
Guasch, J. L., Laffont, J., and Straub, S. (2008). “Renegotiation of concession contracts in Latin America: Evidence from the water and transport sectors.” Int. J. Ind. Organ., 26(2), 421–442.
Guasch, J. L., and Straub, S. (2009). “Corruption and concession renegotiations: Evidence from the water and transport sectors in Latin America.” Util. Pol., 17(2), 185–190.
Jensen, M., and Meckling, W. (1976). “Theory of the firm: Managerial behaviour, agency costs and ownership structure.” J. Financial Econ., 3(4), 5–60.
Koppenjan, J. F. M., and Enserink, B. (2009). “Public-private partnerships in urban infrastructures: Reconciling private sector participation and sustainability.” Public Admin. Rev., 69(2), 284–296.
Marques, R. C., and Berg, S. (2011). “Risks, contracts, and private-sector participation in infrastructure.” J. Constr. Eng. Manage., 925–932.
Matias-Pereira, J. (2008). “Public administration comparation: An avaliation of administrative reforms in Brazil, U.S. and EU.” 〈http://www.scielo.br/pdf/rap/v42n1/a04v42n1.pdf〉 (Mar. 25, 2015).
McKinsey. (2010). Study on the air transport services in Brazil, Rio de Janeiro, Brazil.
Meda, F. (2007). “A game theory approach for the allocation of risks in transport public private partnerships.” Int. J. Project Manage., 25(3), 213–218.
Minas Gerais Government. (2012). “Monitoring report: MG-050.” Minas Gerais, Brazil.
PAC (Programa de Aceleração do Crescimento). (2009). “Brazilian growth acceleration program.”, Brasilia, Brazil.
Peci, A., and Sobral, F. (2007). “Public-private partnerships: A comparative analysis of Brazilian and British experience.” Cadernos Ebape BR, 5(2), 1–14 (in Portuguese).
Silva, C. M. (2012). “Comparative study of the interstate passenger demand for air and road services.” Câmara dos Deputados, Brasilia, Brazil (in Portuguese).
Tirole, J. (1986). “Procurement and renegotiation.” J. Political Econ., 94(2), 235–259.
Tirole, J. (1999). “Incomplete contracts: Where do we stand?” Econometrica, 67(4), 741–781.
Véron, A., and Cellier, J. (2010). “Private participation in the road sector in Brazil: Recent evolution and next steps.” Transport Papers (TP)-30, World Bank, Washington, DC.
Wang, E. C. (2002). “Public infrastructure and economic growth: A new approach applied to east Asian economies.” J. Pol. Model., 24(5), 411–435.
Information & Authors
Information
Published In
Journal of Infrastructure Systems
Volume 21 • Issue 4 • December 2015
Copyright
© 2015 American Society of Civil Engineers.
History
Received: Mar 27, 2014
Accepted: Mar 2, 2015
Published online: May 8, 2015
Discussion open until: Oct 8, 2015
Published in print: Dec 1, 2015
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.