A recent study conducted by the National Confederation of Industry (CNI) confirm speculation of the current problems related to Brazil economic situation. Felipe Montoro Jens, a reporter, an expert on infrastructure detailed the data reported by CNI. The study, or report entitled “Great Works Stopped: How to face the problem?” used data gathered by the Minister of Planning, Mr. Dyogo Oliveira. The report contained data that was collected from the end of 2017 and detailed the current economic situation and how it’s affecting the implementation and of several projects related to infrastructure.
According to the report, 2796 projects have been either stopped before being implemented or has been stopped before completion. Of these 2796 projects, 517 or 18.5% are directly related to infrastructure. These 517 infrastructure related projects account for R $ 10.7 billion. According to Felipe Montoro Jens, These projects broke down to 447 from sanitation, 30 are highway related projects, 16 airport-related projects, 8 of these are urban mobility related, 6 of them are port-related projects, 5 railway oriented and lastly 5 more for waterway projects. You can find Montoro Jens on Twitter @felipemontoroj to continue the conversation.
Ilana Ferreira, who represents the National Confederation of the industry says the most of these projects are affected by the poor population of the country. The implementation and completion of these projects are due mainly to the economic strains that are placed on these poor institutions to complete. Another major factor that it’s causing the stoppage of these projects is many institutions such a small companies schools in nursery simply ran out of funding.
Jose Augusto Fernandes, Who is the director of policy for CNI criticize the Brazilian government in their lack of understanding of the issues at hand and their failure to implement effective solutions. CNI has provided a six-step solution to ensure better execution moving forward:
- Improve microplanning
- Evaluate the most appropriate execution Model.
- Execute effective microplanning
- Better equipped teams.
- More balanced contracts.
- Strengthen internal control.