The National Confederation of Industry (CNI) conducted a study using the 2017 data provided by the Ministry of Planning. It was discovered that 2796 projects in Brazil are in a standstill. 517 of them are infrastructure projects. According to Felipe Montoro Jens, the 517 projects alone are valued at R $10.7 billion. Among the infrastructure projects, 447 were basic sanitation projects. The basic sanitation projects were interrupted during the implementation stage. 16 airports, 5 railways, 5 water ways, 8 urban mobility works, 30 highways and 6 ports made up the rest of the infrastructure projects. Read more about Montoro Jens at baptista.com
In addition to the fact that little resources are channeled to the infrastructure sector, the massive shutdowns in the sector can be attributed to poor project execution by the public sector. According to Felipe Montoro Jens, construction of preschools, day-care centers as well as sports facilities also stalled despite the fact that the projects are cheaper as well as less complex.
The study established that technical problems, budgetary and financial difficulties, project abandonment by companies, expropriation and land ownership problems were the lead causes of the massive failure of the development projects.
Ilana Fereira, National Confederation of Industry Infrastructure specialist, said that technical issues are the major causes of development stagnation. She added that the poor projects indicated that proper planning was not done. She said that startup companies took over schools and nursery projects but because of the economic crisis, they abandoned the projects.
CNI also concluded that the government cut down on expenditure on important infrastructure projects in an effort to contain the country’s economic crisis. The CNI also directed blame to failure for public managers to collaborate with control bodies to make projects pull through to completion. The National Confederation of Industry recommends improving macro-planning, carrying out efficient micro-planning, strengthening internal control, equipping teams better, designing balanced contracts, and evaluating the most appropriate execution modality to curb the situation.
The director of policy and strategy at CNI, Jose Augusto Fernandez said that the country should learn from its mistakes and pick itself up.