Pursuant to Law No. 5102/13 (the “PPP Law”), the process for signing a public-private participation (“PPP”) contract can be initiated ex officio by the contracting administration (public initiative) or be originated from a private initiative. The decree that regulates the PPP Law establishes that PPP projects of private initiative must be submitted at a prefeasibility level. However, neither the PPP Law nor the decree establish norms regarding the submission of private initiative PPP projects profiles. The resolution of the General Directorate of Public-Private Participation Projects (DGPPPP) of the Technical Planning Secretariat (STP) establishes the procedure for the submission of private initiative PPP project profiles and the process for obtaining the declaration of preliminary interest by the contracting administration.

 

Below we summarize the most important aspects of the resolution:

  1. Identification: the sponsor must submit the project to the DGPPPP and indicate whether the submission is made at a prefeasibility or profile level.
  2. Evaluation: the DGPPPP will carry out an evaluation of the project profile and the results will be presented in a report. This report will contain observations to be considered by the sponsor.
  3. Submission of the proposal to the contracting administration: the project profile, as well as the report made by the DGPPPP, will be sent to the contracting administration so that, within 60 days, it declares its preliminary interest in the initiative or rejects it. This term may be extended for an additional 30 days.
  4. Tacit rejection: If the contracting administration does not issue a resolution regarding the project within the period indicated above, the PPP project proposal is considered rejected.
  5. Effects of rejection: If the contracting administration rejects the project, the same project cannot be submitted for a period of 3 years.
  6. Perfection of the submission: The PPP project submission will be perfected only when all the information required for PPP projects at the prefeasibility level is submitted. Only from that moment, the project will acquire priority over other projects.
  7. Effects of the preliminary declaration of interest: it does not generate any right for the sponsor, nor obligation for the State, it only represents the State's intention to learn more about the PPP project submitted by the sponsor.