BNDES Recommends R$234 Billion Investment in Brazilian Infrastructure
The BNDES (Brazilian National Development Bank) has affirmed in a recent study that Brazil requires a further investment of R$234 billion, 4.8 percent of GDP within the next twelve years to overcome the cities urban transportation and infrastructure shortfalls.
The BNDES announced in April they have allocated approximately R$60 billion (US$19.4 billion) to forthcoming projects, representing 40% of the national banks funds for 2015.
Nelson Barbosa, Minister of Planning, Budget and Administration explained, “there is a strong repressed demand for infrastructure investments in Brazil and we are working to transform this demand into concrete investments and projects.”
The BNDES report did not prescribe specific projects, but instead focused on infrastructure investment shortages. According to the report, São Paulo requires R$83.5 billion of additional investment, while Rio de Janeiro will require R$42.5 billion of additional investment in the coming years.
In Rio de Janeiro, the main focus is currently on upgrading the metro, with R$35 billion (83 percent of the total) of the banks funds going towards the construction of 81.8km of lines, doubling the existing infrastructure. This investment will cover both heavy and light metro lines, the metro currently covers 42km, with 16km currently under construction.
Elsewhere in Rio, R$5.8 billion is earmarked for the Light Rail Vehicle (VLT) project, while the BRT has a current budget of R$1.3 billion (34.3km project) and the light rail (1.2km), which connects the suburbs to the center, R$178 million.