Felipe Montoro Jens Share Why So Many Public Works Projects Don’t Get Completed
There are a lot of construction projects in Brazil that are frozen in place. One study, “Great works stopped: how to face the problem?” pegs this number at 2,796 as of the end of 2017. 517 of these are public works projects such as those building sanitation or roads. The cost of these stopped projects is R $ 10.7 billion according to Felipe Montoro Jens, one of Brazil’s top infrastructure project experts.
It is sanitation that is the public works area most affected, Felipe Montoro Jens says. 447 of these type of projects are paralyzed. Also affected are waterways, ports, railway, airports, highways, and urban mobility works. These projects consume resources from the public coffers that don’t generate any benefits at all for Brazilian society. The main issue is the way that the public sector goes about working on projects which is ill thought out and disorganized. More about of Felipe at ideamensch.com
Felipe Montoro Jens says that even simpler projects are held up in purgatory. He points to preschools, sports facilities, and day-care centers as ones that are stalled even though they are not that complex or expensive to finish. The study he cites says that there are issues at play such as financial difficulties, expropriation, and mistakes made in who owns the land the project is being built upon.
Another problem is that small companies were working on a number of these construction projects. Felipe Montoro Jens says that once the economy hit a recession these small companies didn’t have the resources to carry on the work and then abandoned it. As for what to do about all of this, those in the public sector need to plan better, provide teams more resources to do their jobs, create more balanced contracts, and strengthen internal control in order to prevent waste and fraud. Unfortunately, Brazil never seems to learn from these types of studies and so the problems continue.