PPP and self-sustainable concessions are clearly differentiated by the lack of commitment, contribution and guarantees by the public sector in the latter. A good paradigm of this structure has been provided by the new Brazilian PPP law.
Self-sustainable concession [Brazil: Lei 11.079, Art. 2] Art. 2 § 3 An ordinary concession, understood as the concession of public services or public works set forth in Act 8987, dated February 13th, 1995, shall not be considered a public-private partnership when no direct payment from the public sector to the private partner occurs. Art. 3. § 2 Ordinary concessions shall continue to be regulated by Act 8987, dated February 13th, 1995 and by its related acts, not being subject to the provisions of this Act. |