The State of São Paulo established, in 1996, a new policy to reorganize its investments, fostering the opportunity for private companies to enter in sectors operated mostly by the government, for example the provision of public services and deployment of public infrastructure.
The Concessions State Program that started in 1996 (State Law nº 9.361/1996), embraces the concessions, permissions or authorizations (each of these terms are regulated by State and Federal laws) to provide public services, as well as the rights and obligations derived from it. Concessions are used on contracts of public services delegation, preceded or not by the infrastructure construction, where the private partner is remunerated mainly by tariffs paid by the end users. Throughout the more than 20 years of the program, such as Rodoanel, Line 4 - Yellow of Sao Paulo Subway, 3 Hospital Complexes, State Airport Complexes, State Park Concession Program, among others.
In 2004, the State created the Public-Private Partnerships (PPP) program, through State Law nº 11.688/2004. Through this new contractual arrangement, São Paulo is leveraging the quality of public services and infrastructure delivered to its citizens.
