Rio Grande do Sul state expects US$3bn in PPP investments

Brazil's Rio Grande do Sul state expects at least 15bn reais (US$3bn) to be invested through PPP contracts between now and 2026.

The figure refers to investments tied to signed and planned contracts and will be made during the second term of governor Eduardo Leite, who is expected to run for president in the 2026 election.

"Eduardo Leite wants to use the state PPP agenda as part of his strategy of positioning himself as a center-right presidential candidate, maintaining a distance from more extreme right-wing political forces. The challenge for him is to use this agenda to become better known nationally," André Pereira César, a political analyst at Hold Consultoria, told BNamericas.

PPPs in the state are most common in the areas of infrastructure, security, health, education and transport.

"In Rio Grande do Sul, investors understand that there is a good environment for business and that is reflected in the PPPs. It's up to us to inspect and monitor the provision of services, which are public and are designed to improve people's lives," the head of the state's partnerships and concessions department, Pedro Capeluppi, said in a statement.

The government is planning 30-year PPPs for two lots of highways, one comprising those in metropolitan, coastal and mountain regions and one for the Vale do Taquari area and the north. These blocks involve total investments of 10bn reais. The notices for the bidding processes should be published this year, according to a release.

The most advanced contract to be offered is the 353mn-real, 30-year PPP to upgrade Mauá pier, with an auction planned for February 6.

One 30-year PPP is planned for two regional airports: Lauro Kortz in Passo Fundo and Sepé Tiajaru in Santo Ângelo, due to be offered in the first half of the year, with the government investing 29mn reais and the private sector more than 102mn reais to improve infrastructure and operations.

The state is also planning to offer a 200mn-real PPP for the construction and operation of a hospital in Viamão region.

In August 2023, state authorities also announced a PPP program to improve 100 schools in 15 municipalities.