On December 14, 2017, the government of the State of São Paulo signed a letter of intent with North-American company CG/LA Infrastructure, aimed at structuring public-private partnerships in the public lighting sector.
In the first phase of the project, municipalities with over one hundred thousand inhabitants that are able to receive the support for the studies will be selected. The pioneering municipalities will serve as a reference for a kind of guidebook on how to structure public-private partnerships in the area of public lighting.
The initiative is aligned with "Ilumina SP", a state initiative that aims to meet the demand of municipalities that are not able to structure these projects, so that they can count on the São Paulo Treasury to structure projects, public notices, contracts and business models.
In this new partnership signed by the State of São Paulo, CG / LA Infrastructure will be responsible for the hiring and remuneration of technical studies, with one major innovation: the private contractor will be partially compensated through blockchain and cryptocurrency.
The cryptocurrency that will be used is the BuildCoin, which will be released in June 2018 and seeks to create a specific asset for the infrastructure area. Developed by a non-profit organization in Switzerland, it is estimated that the cryptocurrency will collect approximately USD 59,4 million in 2018. The cryptocurrency seeks to improve the integration of the civil construction market, to reduce transaction costs, to ensure the use of smart contracts between the chain links and to promote a fund of financing for the contracts registered on the platform, without charging interest.
Ultimately, the partnership corresponds to an important incentive by the State of São Paulo for transactions involving digital currency, which may establish the beginning of a new way of doing business.