Concession and privatization are two models widely used to financially enable large works of public interest involving engineering designs.
Privatization can be defined as the sale of state-owned enterprises or of any public goods or bodies to the private sector. Typically, these transactions occur through auctions. In addition to generating revenue for the State, another advantage of privatization is the improvement of quality of service, since the winning company usually has much more expertise than the government in the privatized core business.
In the concession, the government (municipal, state, or federal) transfers to third parties (usually a private company) the legal right to exploit a public good for a certain period. Thus, the concessionaire is responsible for the administrative rights and the enjoyment of the benefits, including financial benefits, arising from that asset.
Similarly to what happens with privatization, the concession process is an alternative that improves the quality of the service provided, especially in areas where the government does not prioritize investments.
For the privatization or concession to occur in the best possible way, generating gains for society, government, and private initiative, it is necessary to have a very well-structured model, with a detailed contract specifying all the items of the work.
With more than 60 years of experience in management and execution of works, Sondotécnica offers the modeling of privatization and concession.
