PPPs and concessions grow in Minas Gerais

In recent years, concessions and public-private partnerships (PPPs) in Brazil have been gaining relevance as an important instrument for infrastructure development and improving the provision of public services.

In April, the iRadarPPP indexwhich measures the stock of investment made through partnerships and concessions, closed with a strong increase in relation to the previous month, indicating a positive variation of 2.32% and reaching 103.139808 points (investment estimate of R$ 1.082 trillion).

In the state of Minas Gerais, the advancement of PPP and concession projects is driven by the actions of Codemge – Minas Gerais Development Company, a state-owned company that is part of the indirect public administration.

Codemge acts as the structuring and modeling arm of the state government in concessions and PPPs. These are projects that accelerate access to essential services and improve the management of public resources. The initiatives currently underway include universal sanitation in the Jequitinhonha and Mucuri Valleys, the Cities of the Future program, the structuring of a new health complex in Minas Gerais and the State Transport Logistics Plan (Pelt-MG), in addition to infrastructure projects that promote the state’s economic and social development.

Growth in Minas Gerais

A benchmark in governance and results, the Company has already established several successful partnerships, which demonstrate the versatility and benefits that these well-constructed partnerships offer to society.

In the capital of Minas Gerais, for example, BeFlay MinascentroSerraria Souza Pinto and Rodoviária de BH are successful models of partnership between the public and private sectors. In the interior, the Grande Hotel de Araxá and the Palace Poços de Caldas are other successful examples. Among the numerous benefits of these partnerships are the generation of jobs and income, improvement in the quality of services provided to the population and savings to the public coffers.

BeFly Minascentro

The economy of Minas Gerais is feeling the positive effects of its reopening. After its successful concession for use by the private sector, carried out by Codemge, the tourism sector is reaping the benefits of the partnership. With more than 100 events held in one year, growth was around 20% compared to 2017, the last year of operation before it was closed for renovations. The hotel industry also saw its occupancy rates increase with the reopening of the enterprise: a jump of almost 15 percentage points. In addition, the State of Minas Gerais eliminated maintenance expenses for the site, saving around R$1.5 million per year, and now receives, through Codemge, royalties annual.

Souza Pinto Sawmill

The concession of Serraria Souza Pinto, in Belo Horizonte, guarantees historical protection of the equipment, optimization of the asset’s operation and essential improvements to the property’s infrastructure, with investments starting at R$7 million and enhanced cultural and tourism activities. The concession, modeled with the participation of Codemge, is a milestone, for what it represents and for the way it was structured, in record time, together with the Clóvis Salgado Foundation (FCS, manager of Serraria), the Secretariat of Infrastructure, Mobility and Partnerships (Seinfra) and the State Secretariat of Culture and Tourism (Secult). The efficiency and joint work demonstrate that the Company is among the best modelers of concession projects in Brazil.

BH Bus Station

Opened in 1971 as the largest and most modern passenger terminal in Latin America, the BH Bus Station covers approximately 40,000 m² and is responsible for transporting approximately 10 million passengers per year. It also offers a variety of services to the population, such as food, banking, post office and lottery. After being managed by Codemge and now managed by a private partner, the Bus Station has been revitalized, offering greater safety, comfort, mobility and well-being to users.

Grand Hotel of Araxa

Imposing and majestic, the Grande Hotel de Araxá presents a new hospitality proposal for high-end wellness tourism. With its market repositioning, the hotel complex reclaims its origins as a refuge for those seeking therapeutic experiences, further valuing local elements of culture, history and emotional memory. The enterprise is managed by a private partner, through a successful partnership with the government, through Codemge. With the lease, the State of Minas Gerais contributes to preserving the historical heritage, strengthening tourism and developing the economy of the region, in addition to saving resources in the order of R$ 30 million per year with maintenance and operation of the asset and also receiving royalties annual.

Palace Hotel

The city of Poços de Caldas exudes tradition and hospitality. The Palace Hotel is a landmark of the city. The successful partnership between Codemge and a private partner has brought growth to the complex and contributed to boosting the regional economy, in addition to generating revenue for the public coffers. royalties annually. The State also no longer bears maintenance and operating costs – on average, almost R$3 million saved per year.

The Company believes that the business of managing hotels and event spaces can be handled by the private sector. There are specialized companies, such as Codemge’s current partners, and this certainly brings benefits. After all, when an asset is being well managed and generating user flow, it is bringing economic development to the location.

In Minas Gerais, the public and private sectors are working together for economic growth and the well-being of the population. Click hereie learn more.

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