MercoPress. South Atlantic News Agency

Municipal test for President Lula's administration.

Brazil is in the final hours of campaigning for Sunday's municipal elections with one of the most heated and important contests in Sao Paulo, South America's largest city

In a country where voting is mandatory an estimated 120 million Brazilians will be voting for mayors and town councillors in 5,562 municipalities. Cities with more than 200,000 eligible voters will hold run-off elections in the event no candidate receives more than half of the vote. The second round is scheduled October 31.

In Sao Paulo, Mayor Marta Suplicy, of the ruling Workers' Party (PT), is seeking re-election against a field of 10 candidates led by former Health Minister Jose Serra, of the main opposition party.

Ms. Suplicy, a close personal friend of President Luiz Inacio Lula da Silva, and Mr. Serra are tied with 35 % support of the voters according to a Datafolha poll. All poll results point to a run-off between Suplicy and Serra, an outcome in which the opposition is seen to have the advantage.

"With the firm and decisive support of President Lula I intend to complete and expand the work of the Sao Paulo mayor's office" said Ms. Suplicy in state-sponsored radio and television airtime that featured the mayor with the president. "Marta deserves our vote of confidence," Lula says in the ads.

The president's statements have drawn criticism and calls for an investigation by the opposition, prompting Lula to apologize last week for stumping for the mayor during an event marking the start of a public works project.

Political analysts forecast that the ruling party and allies in Congress will manage to either win or qualify for run-offs in 17 of the 26 state capitals. However, the race in Sao Paulo has national implications that could tarnish the party's overall performance.

"Despite the show of force in the nation's major cities, a PT defeat in Sao Paulo could remove the lustre from the ruling party's efforts" pointed out Antonio Vital, editor of the Congress in Focus Internet site.

According to recent polls, the PT will win outright victories in the state capitals of Belo Horizonte, Aracaju and Palmas, and likely advance to the second round of voting in Sao Paulo, Porto Alegre, Curitiba, Recife, Belem and Rio Branco.

In Rio de Janeiro, the country's second-largest city, the PT has virtually no chance. The federal capital of Brasilia is run by a governor who is not up for re-election at this time. Rio Mayor Cesar Maia, of the opposition Liberal Front Party, leads in the polls with 48% of the vote, distantly trailed by evangelist preacher Marcelo Crivella with just 14%. Only 5% of Rio interviews said they would vote for the PT's candidate, Jorge Bittar