Many countries facing a shortage of fresh water and arable land, Brazil decided to use their wealth and resources to attract global players in agribusiness to the historically poor San Francisco Valley (SFV) in the north-east. To do this, Brazil initiate its first public-private partnership (PPP) in the irrigation on Pontal, partly built irrigation project in the SFV. In exchange for a partial refund from the Brazilian government and the free use of 30,000 hectares of land for 25 years, the private sector partner will finish the construction of irrigation infrastructure and the creation of agricultural work on the project; partner also had to integrate some of the local small in the production chain. In December 2009, Codevasf was almost ready to start accepting applications for Pontal. For Clementino Coelho de Souza, director of infrastructure for Codevasf, the stakes were high: in case of success at Pontal, PPP can be played all over the SFV, making historically poor region in the center of agriculture, as well as an example for the rest of the world. "Hide
by David E. Bell, Marcos Fava Neves, Tom Luciano e Castro, Natalie Kindred Source: Harvard Business School 23 pages. Publication Date: November 30, 2009. Prod. #: 510042-PDF-ENG