According to a research conducted by the National Confederation of Industry (CNI) in 2017, 2,796 construction and maintenance projects have been paralyzed in Brazil. According to the infrastructure industry expert, Felipe Montoro Jens, 517 (corresponding to 18.5% of the projects), are under the infrastructure industry and are worth R $10.7 billion.
Basic sanitation projects were the most affected in the infrastructure industry. There were 447 enterprises which were interrupted during the implementation stage. Learn more about Felipe Montoro Jens at terra.com
The author of the survey continues to say that not much resources towards the projects in the infrastructure industry. Additionally, the projects that are not holding ground is an indication of a flaw in project execution by the public sector. They end up not benefiting the people who were meant to benefit from the projects.
According to Felipe Montoro Jens, the CNI had foreseen the failure of completion of education projects, although the projects were less costly as well as not complicated.
The study showed that the massive interruptions and failure was mainly caused by technical problems, financial constraints, and companies abandoning projects as well as expropriation.
The infrastructure specialist, Ilana Ferreira, holds the view that the technical problems are the lead cause of the interruptions. She said that the projects were poorly planned and implemented. Additionally, the economic crisis made it even worse.
Felipe Montoro Jens said that the government had to cut spending to contain the economic crisis in Brazil. According to him, this is the root cause of interruption of important infrastructure projects.
CNI recommends several measures to contain the situation in Brazil. The measures include: improving macro-planning, proper execution strategies, conducting efficient macro-planning, equipping teams better, designing of more balanced contracts as well as strengthening internal control.
The CNI director emphasized the importance of learning from mistakes.
The National Confederation of Industry (CNI), founded in 1938, is an institution which represents the highest body in the industry’s trade union system. It works with relevant authorities to defend the interests of the national industry.