With several states facing scarcity of freshwater and farmable land, Brazil decided to leverage its wealth of both resources to attract international agribusiness players to the historically poor Sao Francisco Valley (SFV) in the nation's northeast. To do so, Brazil was instituting its first public-private partnership (PPP) in irrigation at Pontal, a partially assembled irrigation project in the SFV. In the exchange for fractional repayment from the Brazilian authorities and free use of 30,000 hectares land for 25 years, the private-sector partner would end constructing the irrigation infrastructure and create agricultural operations on the project; the partner was additionally required to incorporate some local smallholders into the creation chain.
In December 2009, Codevasf was almost ready to begin accepting bids for Pontal. Manager of infrastructure for Codevasf, for Clementino de Souza Coelho, the stakes were high: PPPs could be replicated throughout the SFV, transforming the poor area into an agribusiness heart, as well as be a model for the rest of the world if successful at Pontal.
PUBLICATION DATE: November 30, 2009 PRODUCT #: 510042-PDF-ENG
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