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More concessions to boost Brazilian investment

18 Jun 2015

BRAZIL: President Dilma Rousseff announced on June 9 that R$1984bn is to be invested in transport infrastructure under a new concessions programme, with the aim of stimulating the economy and boosting the export sector.

Total investment is expected to reach R$692bn between 2015 and 2018. This would be followed by a further R$1292bn from 2019, including an estimated R$40bn on the new railway to the Pacific, which Brazil is developing in partnership with Peru and China.

Rail investment is expected to total R$864bn, including R$127bn for the North-South Railway project. A further R$164bn would be spent under existing concessions, where the government hopes to see capacity increased through investment in new yards, double-tracking and new routes, as well as additional rolling stock.

According to Rousseff, federal development bank BNDES would provide funding for these projects, alongside private finance raised by issuing bonds on the capital markets. Long-term financing through public banks was still very important in Brazil, she stressed.