According to Infrastructure Project expert Felipe Montoro Jens, data presented at the end of the year 2017 dictates that 2,796 works in Brazil have been frozen, 517 of which were infrastructure projects. Those related to the infrastructure sector make up 18.5% of that aforementioned total, costing $10.7 billion to public offers. With 447 enterprises interrupted, basic sanitation appears to be most affected. On top of basic sanitation, there are 30 highways, 16 airports, 8 urban mobility works, 6 ports, 5 railways, and 5 waterways. Learn more about Felipe Montoro Jens at terra.com
Only 2% of the Gross Domestic Product (GDP) is invested in infrastructure. A large number of resources are provided to this sector, but the sheer amount of work in need of attention in Brazil leads to shutdowns which consume these resources without benefitting society. The failure of the public sector to execute these projects leads to a significant waste of resources.
Despite being cheaper and less complex, daycare centers, preschools, and sports facilities were also signaled in the study according to Felipe Montoro Jens. This study declares the discontinuation of these projects is due to technical problems, company abandonment, budget and finance hurdles, conflicts of land ownership, and expropriation. Ilana Ferreira of the National Confederation of Industry in Brazil expresses, “the main problem that leads to the stoppage of works is technical. These are poor quality projects that indicate poor planning.” She also declares that many small companies took over schools and nurseries, those projects ceasing when the country fell into economic crisis.
Felipe Montoro Jens declares the economic crisis in Brazil generated the need to contain spending, leading to federal government interruptions of important projects. This also affects state and municipal projects, cutting investments and stopping works. Improving macroplanning, evaluating execution modality, efficient microplanning, better-equipped teams, more balanced contracts, and stronger internal control are the main ways to improve this situation.
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