Brazil plans to expect to attract R$1 trillion (about US$192 billion) in infrastructure investments until the end of 2022, Brazilian Infrastructure Minister Tarcisio Gomes de Freitas said in an interview with foreign correspondents on Wednesday (June 3).
"It is an unprecedented volume of investment contracts. It is the largest infrastructure concession programme in the world," The Rio Times quoted Freitas, a well-trained Army engineer who entered the public service more than ten years ago, as saying.
The government is auctioning concessions in assets including roads, railroads, airports, ports, power lines, and oil reserves. The figure includes concessions made since January 2019. In the concession model companies and investors bid to invest in and operate long-term projects. By the end of 2022, Brazil plans to have auctioned concessions for 100 assets.
(Brazilian Infrastructure Minister Tarcisio Gomes de Freitas)
In April, investors piled into the deal, pouring almost $10bn into an array of projects, including 22 airports, five ports, a rail line linking the country’s east coast with the western agricultural interior and multiple road works, according to The Financial Times. French concessions and construction company Vinci won seven of the 22 airports, while Brazilian companies took the rest of the concessions.
Over the last decade, Brazil has progressed an ambitious investment agenda to attract private investment in infrastructure and increase the efficiency of its infrastructure project preparation and management. legislators passed needed reforms to improve the investment environment in the country.
As a result, Latin America’s largest nation returned to the Top 25 Ranking of Kearney’s Global FDI Confidence Index in 2020, which was conducted between January and March of 2020.
Brazil’s economy contracted 4.1% in 2020, the biggest annual recession since the series began in 1996, according to IBGE, the official statistics institute. Still, the result is better the 5.3% plunge forecast by the International Monetary Fund in April last year.
Since the beginning of the Covid-19 crisis, Brazil’s President Jair Bolsonaro has argued that lockdowns and restrictions will only damage the economy and it would inflict greater hardship on the population than the coronavirus itself. "Without salaries and jobs, people die" Reuters had quoted Bolsonaro as saying in July 2020.
The country of 210 million people saw a robust rebound in the back half of 2020, with 7.7% and 3.2% growth in the third and fourth quarters, according to IBGE data
So far the infrastructure concession programme has generated 60bn reais in investments. Bolsonaro’s term ends in 2022.