1. Licensing system

Brazil does not have an integrated management department that is specifically responsible for contracting projects by foreign companies in Brazil. The ministry of Finance, ministry of Development, Ministry of Industry and Ministry of Foreign Trade and other relevant ministries have some relevant policies and measures. Large infrastructure projects in Brazil are run by different ministries, depending on the sector involved. For example, technology-intensive metallurgical, petrochemical and hydraulic projects are managed by the Ministry of Mines and Energy of Brazil, while labor-intensive housing construction, road repair and other simple civil construction projects are managed by the Ministry of Transport of Brazil. The Cooperation Department of the Ministry of Foreign Affairs is responsible for the management of engineering projects with loans from the United Nations and other world financial organizations. The state government bureaus are responsible for engineering projects of this bureau. The state Engineering Bureaus are responsible for municipal construction projects, such as drainage and water supply, urbanization, energy construction and sanitation projects. In view of the lack of funds and investment in infrastructure in Brazil in recent years, on December 30, 2004, the government implemented the "Public-private Partnership Model Law" (PPP), aiming to create conditions for financing infrastructure construction and sustaining economic growth. The federal Management Committee of the PPP Model law is composed of the Ministry of Planning, the Ministry of Finance and the private administration of the presidential office. It is responsible for the unified management of the bidding and construction of large-scale infrastructure projects in China.



Any foreign company carrying out a project in Brazil needs to be registered with the Federal Chamber of Commerce, and the usual practice is to form a limited liability company. After a company is registered with the Federal Chamber of Commerce, it is required to register with the federal, state, and city tax authorities. The operation of any project must be carried out by a technical director, who must be a registered professional engineer registered in the Brazilian institute of Engineers. Since it is difficult for foreigners to obtain such registration, general technical officers are recruited locally. You need to get an environmental permit from the government environmental protection department. The minimum requirements for project construction and acceptance shall meet the relevant professional technical standards of the Brazilian Technical Standards Committee. In the project contract signed with the owner, there are special standards and specifications for quality, safety, environment, schedule, health and design. The contractor shall, in accordance with the standards and specifications in the contract, prepare the corresponding operating procedure documents and submit them to the owner for approval. Only after the owner's approval can they be executed. The contractor shall operate the project in accordance with the requirements of the procedure documents approved by the owner, or the owner shall have the right to request for suspension of rectification or even refuse to accept the project. The contractual implementation process requires a high localization rate of up to 75%. Failure to meet the localization requirement may result in fines. The penalty clause in the project contract is relatively strict, the project delay, not obeying the command of the owner inspector, and failing to reach the local scale may lead to the owner's penalty. Upon completion of the project, the owner shall conduct acceptance inspection of the project in accordance with the provisions of the Contract and meet the requirements of the contract. The owner shall issue a provisional acceptance certificate and the project shall enter into a grace period, which is generally one year. Upon expiration of the grace period, no problem of contractor's liability shall be found in the project, the owner shall issue a final acceptance certificate and the project contract shall end.



2. Tender method



Brazil's federal government ministries in charge of this project and procurement tender, the Ministry of Foreign Affairs cooperation department is responsible for the use of the world's financial organizations such as the United Nations and commodity procurement bidding project loans, the state government agencies in charge of the bureau and commodity procurement bidding of the project, the state bureau is in charge of municipal construction project bidding, such as water supply, drainage urbanization construction, energy and sanitary engineering, and so on. The laws, procedures and methods of Brazilian project bidding are similar to those of European and American countries.



The bidding methods of contracting local projects are generally: open bidding, invitation to bid and bid negotiation.