The National Confederation of Industry (CNI) conducted a study on why so many construction projects around Brazil are paralyzed with inaction. Felipe Montoro Jens, an expert when it comes to infrastructure projects, says that 2,796 construction projects are halted with 517 of those being ones having to do with infrastructure. That adds up to 18.5 percent of the total paralyzed projects and $ 10.7 billion in taxpayer money.
All areas of infrastructure are being impacted. Felipe Montoro Jens reported. The one that is most affected is sanitation with 447 halted soon after they were implemented. Also impacted are highways, ports, railways, airports, waterways, and urban mobility projects. These projects consume a large number of resources and yet don’t offer any benefits to society. More about of Felipe at infomoney.com
Felipe Montoro Jens says that even simple construction projects are not getting completed. He points to preschools, daycare centers, and sports stadiums for secondary schools as other projects that have become paralyzed in recent years. There are a few reasons why these projects come to a screeching halt. First, private companies building these projects will abandon them because they are having financial difficulties. There are also problems where no one took the time to resolve land ownership issues before the project was approved.
The CNI report listed six measures to resolve these work stoppages. They said that macroplanning efforts need to be improved and that before the project is started they should figure out the best way to execute it. They also said that micro-planning should also be improved and that the teams involved in these projects need to be better equipped. They also stated that the contracts with private companies building these projects need to be better balanced and that internal controls need to be strengthened. Felipe Montoro Jens agrees with the CNI on implementing these measures going forward.