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. Total investments from this specific policy amount R$ 95 billions, spent together by public and private sector.
The Concessions State Program that started in 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.
In 2004, the State created the Public-Private Partnerships (PPP) program. Through this new contractual arrangement, São Paulo is leveraging the quality of public services and infrastructure delivered to its citizens. With 11 (eleven) projects in four different sectors (transportation, health, housing and sanitation) São Paulo State has the largest PPP portfolio in Brazil.