Brazil needs US$127bn for urban mobility - association

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Tuesday, September 16, 2014

Brazil needs to invest 299bn reais (US$127bn) in urban mobility over the next 12 years, metro engineers and architects association Aeamesp said in a release.

The assessment is based on a study from national development bank BNDES addressing the needs of 15 metropolitan regions with 71% of the Brazilian population.

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The suggested investment – equivalent to 0.4% of GDP – is approximately three times the current average of 0.1-0.14% of GDP, the release said.

In 2013, a total of 23.8bn reais was invested by the public sector, with 9.3bn reais coming from public-private partnerships and 2bn reais from the private sector through concessions. This was made possible by the PPP law that allows BNDES financing for infrastructure works as well as operations.

To facilitate investments, BNDES has offered new terms for loans made to the public sector, PPPs and the private sector through concessions, including raising maturities to 20 years from 15 years.