The construction of hydroelectric power dams by the government may include the construction of sluices that allow for the private construction of waterways. For instance, privately managed ports will be able to receive large ships only if the public sector provides adequate dredging and rock removal services.
The same author estimates that Brazil would need infrastructure investments of 5% to 7% of GDP to catch up to South Korean standards.Įfficiency in infrastructure service provision depends on the complementary actions of public and private providers. Therefore, keeping infrastructure investment around 2% of GDP, as shown in Table 1.5, is clearly insufficient. Sources: Calderon and Servén, 2010 Frischtak, 2013.Ĭláudio Frischtak, an economist specialized in infrastructure, estimates that Brazil should invest at least 3% of its GDP in order to: (a) preserve the existing infrastructure capital stock (1% of GDP) (b) cope with population growth (1.3% of GDP) (c) offer a 100% coverage of water and sanitation services in a 20-year span and (d) offer 100% coverage of electric supply in a 5-year span ( Frischtak, 2008). Although there is not an international comparison for some relevant statistics in sanitation, the fact that 53.3% of the population is not connected to a sewer network and that 62% of the collected sewer is not treated reveals that there is much to be done in this area ( Frischtak, 2013 original source: National Water Agency (ANA)). Sanitation is another area of concern, especially in metropolitan areas where large numbers of inhabitants live in slums. Twelve years after that traumatic energy supply crisis, the country still walks on the razor’s edge: slight reductions in rainfall trigger concerns about shortages in energy supply. An energy crisis due to insufficient supply erupted in 2001, causing extensive losses in terms of economic growth. However, limited resources to maintain and expand the system resulted in underinvestment. Prepared by the author.īetween 19 Brazil built an integrated system of hydroelectric power generation that allowed the country to provide an efficient system of energy distribution to the different areas of the country.
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