CICA study broadens the participation of medium-sized companies in infrastructure
The Brazilian Chamber of Construction Industry (CBIC), in partnership with the Confederation of International Contractors’ Associations (CICA), has elaborated a study that indicates ways to improve the participation of medium sized companies in the infrastructure market.
The document, which was delivered this week by CBIC’s president, José Carlos Martins, to the president of the National Economic and Social Development Bank (BNDES), Joaquim Levi, can be accessed in English ‘Position Paper – Medium-Sized Companies’ and in Portuguese ‘Position Paper – Como melhorar a participação de empresas de médio porte no mercado de infraestrutura’, on CBIC’s website.
Noting the important role of these companies for economic growth, the study points out that the opening of the infrastructure market can improve the quality of infrastructure and public service programs, bringing savings to public administrations as well.
In order to assist governments and international organizations in addressing this issue, the entities recommend actions to promote.
- a greater legal and regulatory certainty related to the public procurement and structuring of infrastructure projects.
- the development of municipal markets related to infrastructure.
- the splitting of large-scale projects in small lots when that is technically feasible and economically advantageous.
- a broader MSC’s participation in consortia, in public procurement and in PPPs.
- to allow, by contracts adapted to the MSC but neglected by the main international contractors, the dissemination of the beneficial effects of the structuring infrastructure to which the majors of the construction industry should bring more support.
- alternative ways of dispute resolutions, such as arbitration.
- the adoption by MSC of high standards of corporate governance, including effective compliance.
“The Infrastructure development model in Brazil in the last decade was based on a market-focused structure that involved the participation of a select group of few large companies and large projects. In this model, the criteria for obtaining finance, insurance, for example, met the standards of large corporations. When we now turn to encourage market growth for smaller companies, we must also be concerned about adapting those criteria to the new business and economic reality of the country. Transparency, efficiency and isonomy are the slogans that should govern this new Brazil that we want” says Carlos Eduardo Lima Jorge, Vice President of Infrastructure at CBIC and president of CBIC’s Infrastructure Comission (Coinfra).
Check out the full version of the document in Portuguese and English versions on CBIC’s website.