The crisis Brazil now faces creates a complex situation: the
need for increased economic capacity and infrastructure development
but also increased public expenditure. Towards solving this
dilemma, the Brazilian Law of Concessions (Law No. 8,987, of
February 13, 1995) offers possibilities not evident at first
sight.
Project finance is a financing mechanism by which lenders rely
on cash flow and assets from a project as primary sources of
payment and as security on the invested capital. The mechanism
enables dilution of project risk and transfers the position of
project main investor from the government to the private
sector.
In this context, Article 27-A of the Law of Concessions
(introduced by Law No. 13,097, of January 19, 2015) allows lenders
and guarantors the right to take control or temporary
administration of the concessionaire to promote its financial
restructuring and to ensure the continuity of services. This
"step in right" of Anglo-Saxon origin has not
