Senior decision-makers come together to connect around strategies and business trends affecting utilities.


Brazilian catch: initial x final cost

image credit: Rafael Herzberg
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

  • Member since 2003
  • 2,117 items added with 1,237,599 views
  • Mar 24, 2021

Brazilian catch: initial x final cost

Our cultural profile points to a systemic preference: to privilege only the initial cost.

This is true from a list of projects sponsored by the government. Two classic examples:

* Starting public projects at a "contracted" price and over time paying a higher price
* Stop the execution of these projects (there is a multi-billion dollar stock in USD, of these cases).

The background of this situation is the permissiveness with which the final cost ends up being higher than the initial one. There are contractual clauses that open the door to this "escalation".

At the same time, the "blatant" lack of official planning and control intensifies the problem.

When will we adopt the winning strategy of countries that achieve and maintain a more planned final cost?

Rafael Herzberg's picture
Thank Rafael for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »