MercoPress. South Atlantic News Agency

Brazilian gov't launches third version of PAC

The initiative will lead to “the refinement of government management and planning,” Haddad explained

Brazilian President Luiz Inácio Lula da Silva's government announced federal funds in the amount of R$ 371 billion (US$ 75.62 billion) over four years for the creation of roads, railways, ports, and airports in what is known as the New Growth Acceleration Plan (New PAC), which is a re-edition of an initiative undertaken during his second term in office and in the early stages of the Dilma Rousseff administration.

Private investors are expected to make an additional substantial contribution to stimulate “growth with social inclusion and environmental sustainability” and “reduce social and territorial inequalities in a common effort focused on ecological transition,” according to a government document also mentioning constructions, urban mobility, 5G communication (5G), education, healthcare developments, energy transition, drinking water, and defense, among other targetted topics.

As of September, as part of the New PAC, the federal government will launch the first public tenders for the selection of priority projects for States and Municipalities in the urban planning, education, health, culture, and sports sectors, it was explained.

The New PAC would also feature loans from banks and other public such as investments already planned by state-owned companies like Petrobras, in addition to the public-private partnerships (PPPs). The government projects to generate 2.5 million direct jobs and 1.5 million indirect jobs, it was explained.
Investments are expected to grow in wind and solar energy, high-speed internet for schools and health centers, railroads, highways, waterways and ports, in addition to the improvement of housing conditions.

The new edition will once again include works promised in PACs 1 and 2 that were left undone, such as the Transnordestina and Oeste-Leste railroads, or the paving of roads in Minas Gerais and Paraná.

The New PAC “will allow the improvement of the regulatory environment and environmental licensing, the improvement of concession and PPP mechanisms, the improvement of public procurement processes, the refinement of government management and planning, in addition to the expansion of credit and economic incentives,” Finance Minister Fernando Haddad said.