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Brazilian government announces TRILLION-DOLLAR investment of 1,6 trillion to revolutionize the country with the aim of improving the quality of life in cities, integrating sustainable mobility, housing, infrastructure and basic sanitation

Written by Alisson Ficher
Published 30/10/2024 ร s 15:27
The Brazilian government will invest R$1,6 trillion in urban mobility and housing by 2029, boosting quality of life and innovation in cities.
The Brazilian government will invest R$1,6 trillion in urban mobility and housing by 2029, boosting quality of life and innovation in cities.

Brazil announces R$1,6 trillion to transform cities, integrating urban mobility, housing and sustainable infrastructure. With 75% participation from the private sector, the New Industry Brazil project aims to modernize the country by 2033.

In the midst of an urban reality full of challenges, the federal government promises a true revolution.

A massive investment of R$1,6 trillion, aimed at transforming Brazilian cities into centers of sustainable development and quality of life.

Comprising everything from housing to cutting-edge infrastructure and basic sanitation, the project is more than just a growth plan.

And a promise of ambitious urban restructuring that could impact millions of Brazilians.

The biggest urban investment of the decade

This Wednesday (30), President Luiz Inรกcio Lula da Silva, alongside ministers such as Geraldo Alckmin (Development) and Jader Filho (Cities), and with the presence of businesspeople, officially announced the investment.

The astronomical amount will be directed to projects linked to Mission 3 of the New Industry Brazil (NIB), launched in early 2023 with the aim of modernizing the country by 2033, focusing on sustainability and innovation.

More than 75% of the amount will come from the private sector, consolidating a strong partnership with the government.

As per plan, Brazilian cities will become more integrated and sustainable, with significant improvements in urban mobility, sanitation, infrastructure, and with a focus on the construction of affordable housing.

Affordable credit: the role of the Mais Produรงรฃo Plan

Mission 3 has robust financial support from the Mais Produรงรฃo Plan (P+P), designed to boost NIB projects.

Since 2023, approximately R$48,6 billion has already been invested in relevant initiatives, and an additional R$65,1 billion will be available by 2026.

Among the major financiers are Caixa Econรดmica Federal, BNDES and other regional institutions, totaling R$405,7 billion for investments aimed at industrial development.

Still, the integration between PAC and the Minha Casa Minha Vida program expands the possibilities, with R$492,4 billion allocated to housing and infrastructure projects, creating a favorable environment for the growth of small and large industries.

Private sector bets on mobility and infrastructure

In addition to public support, the private sector is committing around R$1,05 trillion to structural and mobility works, which are essential for the future of Brazilian cities.

According to the Brazilian Association of Infrastructure and Basic Industries (ABDIB) and the Brazilian Chamber of the Construction Industry (CBIC), the contribution will finance essential urban works, including sanitation, construction of roads, railways, highways, ports and even airports.

This injection of private capital should, according to ABDIB, generate large-scale jobs and improve urban life, while fostering new businesses in the infrastructure sector.

The bet on electric batteries and sustainable transport

In line with the future of mobility, Brazilian companies such as WEG have already announced investments of around R$1,8 billion for the production of electric batteries.

With large lithium reserves, Brazil seeks to become a hub for the production of essential components for the electric vehicle industry.

The goal is for 3% of electrified vehicles to use domestic batteries by 2026, rising to 33% by 2033.

According to MDIC, The intention is to produce batteries in a more sustainable way, using renewable sources and reducing dependence on energy sources such as coal, quite common in developed countries.

Innovation in mobility: the โ€œflying boatโ€ and other advances

At the launch event, Finep will sign contracts with startups to develop new technologies.

One of the highlights is the โ€œflying boatโ€, developed by AeroRiver, which promises to transport up to 10 people at up to 150 km/h, regardless of the water level in the rivers.

Other projects range from hybrid turbogenerators for sustainable aviation to autonomous electric trucks.

These innovations are part of the government's long-term strategy to foster a low-carbon economy and expand sustainable solutions in all areas.

Ambition and challenges: the goals for 2033

In addition to the investments already planned, the government has set ambitious goals for 2033, such as the construction of around 6,9 million affordable homes through the program. My home, my life, with 1,4 million of these homes including photovoltaic panels to generate solar energy.

Another priority includes strengthening production chains for metro-rail systems and automotive vehicle components.

Brazil is on a path of innovation that can revolutionize its urban infrastructure and contribute to reducing regional inequalities.

Now, the question remains: will this trillion-dollar investment be enough to change the future of Brazilian cities? Leave your opinion in the comments.

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Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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