Felipe Montoro Jens is a Brazilian businessman who has 20 years of experience in infrastructure. He wrote an article where he described how Brazil privatizing multiple industries over the years has affected how infrastructure gets built and managed. He is a graduate of the Getulio Vargas Foundation and the Thunderbird School of Global Management.
He has worked for multinational firms in the past such as PriceWaterhouseCoopers. Felipe Montoro Jens has been the head of project finance, a chief investment officer, and a chief executive officer. He is now a consultant who uses his deep knowledge of infrastructure to advise on these types of projects.
The government of Brazil used to own companies in a wide range of industries. From the 1930s until the 1980s the government became much larger. This started to change in the 1980s, Felipe Montoro Jens says, due to a major debt crisis. In 1990, the airplane, petrochemical, and steel industries became privatized. In 1995, electrical energy, sanitation, transportation, banking, and telecommunications were privatized successfully. Find out more at consultasocio.com to learn more.
The Public Private Partnerships Act was passed in 2004. This enabled government and private companies to partner on infrastructure projects. Felipe Montoro Jens says this is a historic law that had a major impact. The first industry to be affected by this law was telecommunications and the shift to private companies controlling it was smoothly handled.
The example he used was Telebras. This was a government-owned telecommunications company that was split into 12 parts. Each of these was auctioned to the highest bidder. Each party taking part in the bidding process could only bid on one of the twelve so that no monopoly could be created.
Felipe Montoro Jens concluded by saying that these privatization initiatives have helped develop Brazil’s economy and will continue to do so for the next several decades.