Analysis of PAC Transports: Investments of R$ 58.9 billion

Federal government concludes more than 4000 km of roads but delays compromise the trust in the program

In spite of a medium delay of four years between the start of a work and its conclusion, the 10th Report of the Program of Growth Acceleration (PAC 2) points the conclusion of more 3000 km of roads. This period was also marked by the concession of 1400 km of roads to private companies.  In the total, the area of transports—that includes roads, railways, ports, waterways and airports—corresponded to R$ 58.9 billion in projects. But the government is clearly having difficulties to make works— new or DNIT-managed—go ahead. The reasons alleged involve from difficulties with environmental licenses to lack of designers and projects.

Federal government carried out 4416 km of interventions. Among the works ended as part of PAC 2 in the period, the most important works were the duplication of the BR-101 in Santa Catarina and duplication of 30 km of the same road in the state of Sergipe.

In Pernambuco, 22 km of BR-408 were duplicated and in Rio Grande do Norte 78 km of BR-110 were built. Other 7357 km of roads have works going on, being 2683 km of duplication and adjustment works and 4674 km of paving and construction in the whole country.

The duplication of 85 km of BR-392 in the state of Rio Grande do Sul, for example, has 74 percent of works concluded and the works of pavement adjustment of 51 km in the BR-104, in Pernambuco are 75 percent concluded. The government counts also the investments in road maintenance—the contracts of road refurbishing and maintenance (Crema) involve 69 percent of the 49725 km contracted.

Study of CNI shows losses of R$ 28 billion with PAC delays

A survey carried out by the National Confederation of the Industry (CNI) pointed that the delay in the development of six infrastructure works of the PAC caused losses of R$ 28 billion. According to the study, extra expenses caused by the delay in conclusion of works would be enough to build 466,000 popular houses.

The survey gave priority to the Airport of Vitoria, in the state of Espírito Santo; the sanitation Project of Cocó basin, in Fortaleza; the West-East integration railway in Bahia; a section of the road BR-101 in Santa Catarina; the power transmission lines that connect the hydroelectric plants of Madeira River to the interconnected national system; and the transposition project of the São Francisco River, that responds itself by losses of R$ 16.7 billion. But they work as a sample for the other projects involved. In the case of roads, delays are having an average cycle of four years between the announcement and the real conclusion of the project.

According to the entity, the problems are related to recurrent issues, such as bad quality of basic design, delay in obtaining environmental licenses and in carrying out disposessions and bad management during the works, besides the lack of qualification and experience of the personnel that carries out and follows the development of the projects.

To reduce delay costs, CNI suggests an increase in the use of concession and partnership mechanisms and a quality improvement of the bids. The entity intends to send a document to all candidates to president suggesting the use of an integrated contracting instrument where the public management contracts a private company to develop and implement the design, and the improvement and enlargement of the use of reference price systems.