Investments in infrastructure should reach 1.94% of GDP

According to the Ministry of Transport, the new highway concession policy will help boost investments. The department will publish five public bidding documents for highways this year, totaling R$ 66 billion.

Investments in the infrastructure sector in 2023 should reach 1.94% of the Brazilian GDP, according to the survey contained in 2023’s Infrastructure Letter, prepared by Inter.B International Business Consulting. Nevertheless, the company identifies that the percentage required for modernization in this area is 4.2% of GDP over the next 20 years and mentions that this condition will only be possible if there is an increase in private investment.

According to Infra Agency, the consultancy presented an agenda of procedures that will help this goal to materialize, such as making investment in infrastructure a state policy, improving legal security, strengthening the National Bank for Economic and Social Development (BNDES) as structuring projects and the Investment Partnerships Program, establishing government planning with better criteria for choosing investments, among other actions.

The letter also points out that for the projection of 1.94% of GDP to become effective, the Ministry of Transport must complete the announced projects. To get an idea, between 2018 and 2022, there was an increase of 0.25 percentage points of GDP in infrastructure contributions in Brazil, reaching 1.86%.

Concessions should boost investments

According to the Ministry of Transport, the new highway concession policy will boost investments, ensure works, and provide fairer toll rates. The proposal contains innovations and good practices in public policy guidelines and procedures for new private partnership projects on highways, using the last three decades learning curve, when the first concessions began.

It was necessary to optimize the highway concession model. Among other challenges, the National Highway Transport Department of the Ministry of Transport detected concession contracts low performance, delay in the rebidding process (friendly return) and new studies, in addition to user dissatisfaction with works low execution in return to the calculated/practiced tariff value.

According to the Minister of Transport, Renan Filho, the partnership between public and private sectors will unlock significant projects on the highways. According to him, the goal is providing quality highway transport, with fair rates that do not affect the mobility of citizens with delayed and stopped works, nor the sustainability of companies.

The Ministry foresees the publication of five bidding notices for highways this year, which add up to R$ 66 billion in new investments and operating expenses for a 30-year contract. The improvements add up to 1,027 kilometers of duplications that should generate 460 thousand direct and indirect jobs and income effect. Projects are planned for Paraná Integrated Highways – lots 1 and 2; BR-040/495/RJ/MG (Rio-BH); BR-381/MG; and BR-040/GO/MG (Crystal Route).

By: Santelmo Camilo