Brazil's incoming govt expected to keep infra legislation

Mollifying investors, the key infrastructure adviser to Brazil’s president-elect Luiz Inácio Lula da Silva said current infrastructure legislation will be maintained.

“We didn't detect needs to revoke measures … on the first day of the new administration. There were other areas where it is very important that [revocations] be done on the first day but not in our area,” Miriam Belchior (pictured), who oversees infrastructure in Lula’s transition team, was quoted as saying by Valor Econômico newspaper.

"This is a very positive signal, as this elected government transition team is showing that it wants to limit interference in infrastructure and points to the continuity of the infrastructure agenda. In recent years, we have had important regulatory changes that have encouraged private investment in the sector and a change would be a very negative sign," Camila Affonso, a partner at infrastructure consultancy Leggio Consultoria, told BNamericas.

Previously, Belchior served as planning minister and head of state-run bank Caixa Econômica Federal. 

Belchior is also rumored to become infrastructure minister after the Lula takes office on January 1.

She also said her team was evaluating room in the federal budget to advance recovery of federal highways and resume paralyzed works.

Concerns grew among sector players after a review of regulations was announced, thought to affect sanitation, rail and port regulations that facilitated private investment.

Yet, while the concession and privatization agenda is unlikely to be affected, Lula and his main advisers said certain operations will be reviewed.