Study: Only 3% of PAC projects completed after 2 years

At end-2008, two years into the program, only 3% of projects under Brazil's growth acceleration plan PAC were completed, while 74% have not even started construction, according to a study carried out by NGO Contas Abertas. The study analyzed a total of 10,914 projects, based on the official figures from the PAC management committee. Of the 319 finished projects, 39 are in São Paulo state, 26 in Mato Grosso do Sul state and 25 in Minas Gerais state. Although São Paulo has the largest number of finished projects, there are still 725 initiatives that have not started the construction phase. The information relates to investments planned by the federal government, state-owned companies and private initiatives from 2007-10 as well as some after 2010. In Bahia state, only 2% of the 917 projects are complete, while 80% have not passed the planning stage. Maranhão state has the worst record with only three out of 385 projects completed. There are 56 projects underway, according to the study. In the northern region, 53 projects have been completed in a total of seven states - Acre, Amazonas, Amapá, Pará, Rondônia, Roraima and Tocantins. There are 1,309 projects scheduled for these states. Contas Abertas cited excessive bureaucracy, environmental problems and delays in the release of funds among the principal reasons for the delays to projects. A forecasted amount of 56.3bn reais (US$28.9bn) has been allocated since the beginning of the program but only 37% (21.2bn reais) has actually been spent, with Rondônia ranking lowest. Around 107mn reais of a total of more than 530mn reais was spent, equivalent to less than 20% of the initial budget forecast.