New Brazilian Infrastructure Policy does not meet minimum transparency standards – Key challenges include insufficient disclosure of environmental and project planning information, and limited opportunities for social participation
São Paulo and London, 5th December 2024 – Transparency International Brazil and CoST, the Infrastructure Transparency Initiative today launched a study assessing the New Brazilian Infrastructure Policy (PAC). The analysis reveals that PAC falls short of meeting minimum transparency standards.
PAC recorded a score of 8.15 out of a total of 100 points, based on criteria established in 2023 by Transparency International Brazil’s Open Infrastructure Guide. The guide was developed to evaluate the availability of information on large infrastructure projects in Brazil, including those under this new policy. Based on the criteria, PAC scored zero in categories related to the availability of information on planning stages, preliminary assessments, social and environmental risks, internal tender stages, prior and informed consultations with affected populations, and specific elements related to concessions. The highest score (50 out of 100) related to the existence of guidelines for publishing information.
The study also evaluated PAC projects using the Open Contracting for Infrastructure Data Standard (OC4IDS), which has been endorsed by the G20 in 2019 as part of the Compendium of Good Practices for Promoting Integrity and Transparency in Infrastructure. PAC projects meet only 10% of the data points required by the OC4IDS.
“Low levels of transparency heighten the risks to the integrity and efficiency of PAC, particularly in a sector historically associated with high rates of fraud and corruption. Transparency helps mitigate these risks by empowering civil society and communities to track implementation, fostering a more accountable and inclusive policy” says Maria da Graça Prado, Senior Policy Advisor at CoST International.
The scale and magnitude of resources invested in PAC, combined with a track record of corruption cases, presents a significant challenge to ensure access to information and accountability. Transparency is essential to provide the public with opportunities to monitor these investments. Preventing the mistakes seen in previous Brazilian policies is critical, as they compromise the effective allocation of public funds and threaten access to essential public services.
Amanda Faria Lima, Coordinator for Integrity and Public Governance at Transparency International – Brazil, explains that the study also examined the governance of the policy from the perspective of social participation and the alignment with ecological and climate transition goals. “There is a lack of mechanisms for social participation and oversight within the policy. According to the current regulations governing PAC, only federal public agencies are involved. There are no mechanisms embedded in the project and works cycle to enable social participation,” she states. “We also found that the absence of transparency regarding how PAC projects align with environmental, social, and climate goals increases the risk of greenwashing”
DOWNLOAD: Governança, Transparência e Participação Social no Novo PAC
Recommendations
The study offers recommendations for the federal government to improve transparency standards and strengthen PAC’s governance. A key suggestion is to centralise all information on a single platform, using accessible language and open formats. This should encompass all stages of the investment, from planning to project delivery, including investment contracted through private investments (concessions and public-private partnerships). Participation should be encouraged throughout the entire investment cycle by creating social accountability mechanisms that include representatives from communities and civil society, particularly from local areas that are impacted by the projects.
CoST – the Infrastructure Transparency Initiative
Lauren Pemberton
l.pemberton-nelson@infrastructuretransparency.org
Transparência Internacional – Brasil
Johanna Nublat
jnublat@br.transparency.org.br