Infrastructure can yield about R$ 40,4 billion to the Brazilian GDP with investments planned until 2022

If the planned investment of R$ 28 billion in infrastructure is carried out, the Brazilian GDP could receive R$ 40,4 billion from the segment

According to an estimate made by LCA Consultores, if investments in infrastructure are carried out, it could yield R$ 40,4 billion to the Brazilian GDP. The study called “X-ray of the Infrastructure sector” made a projection in relation to public contributions to be made in the infrastructure sector.

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According to the study, which was requested by Sinicon (National Union of the Heavy Construction Industry – Infrastructure), if BRL 28 billion are invested in PPI projects – Investment Partnerships Program, the return to the Brazilian GDP could exceed BRL 40 billion by the year 2022. The infrastructure segments that are expected to receive investments are: sanitation, logistics and transport. The “X-ray of the Infrastructure sector”, also showed data that for every R$ 1 invested in infrastructure, R$ 1,44 is reverted to the Brazilian economy, but precisely in the GDP.

Ministry of Infrastructure should invest BRL 1 billion in aviation

To encourage regional aviation, the Ministry of Infrastructure (MInfra) invested and will invest around BRL 1 billion between 2019 and the end of 2021. These contributions will be used in aviation equipment, renovation and construction of new airports, which will benefit around 112 cities in all regions of the country. The goal is to increase connectivity and be able to expand flights from all 27 states in the country.

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The executive secretary of the Ministry of Infrastructure, Marcelo Sampaio said that the federal government is carrying out a major transformation in the aviation sector, improving infrastructure, improving the business environment and reducing bureaucracy, and is trying to expand this model in the aviation industry.

The federal government's goal is to have 200 cities offering regular flights by 2025. According to data from the National Civil Aviation Administration (Anac), there were 128 regular airports in Brazil in 2019. As of 2020, the pandemic affected the supply of flights. Due to restrictions and reduced demand, services are currently available in only 96 locations. With the decrease in passenger traffic, the Ministry of Infrastructure strives to speed up the renovation and expansion of several airports.

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Port of Santos will have more regulatory rigidity in privatization, says MInfra minister

Compared to other government privatizations, the privatization of the Port of Santos is expected to have greater regulatory rigidity, and port operators should have “greater obstacles” to participate in the franchise. The information was provided by the Minister of Infrastructure, Tarcísio de Freitas. The event is expected to be held next year and involves the largest port complex in Latin America.

Although regulatory and participation adjustments are specific adjustments for each port, Freitas recalled that the privatization model is usually linked to the company's sales performance and port operation.

The Minister of Infrastructure also commented that the images of participants interested in these commodities vary. The minister said that the consortium that could cause controversy in the auction could include port operators and investment funds, and these companies have shown “great interest” in these privatizations.

It is expected that all of Brazil will have access to aviation. The Amazon region, with many remote municipalities without road connections, is a priority. Since 2019, around 200 million reais have been allocated to the purchase of Acre, Amapá, Amazonas, Mato Grosso and Pará Engenharia and equipment for 25 airports.