São Paulo governor looks to speed up infrastructure projects

The new governor of São Paulo state, Tarcísio de Freitas (pictured), announced the merger of certain departments to speed up infrastructure projects.

"With such a step, São Paulo will reinforce its leadership in the infrastructure plans of Brazil, since the state governor has a very favorable agenda for both privatizations and concessions," João Cortez, a partner at infrastructure-focused advisory firm Vallya, told BNamericas.

Freitas, who assumed the post on January 1 and is a former infrastructure minister, announced that the state’s infrastructure and environment department will merge with the logistics department.

The aim is to accelerate the approval of environmental licenses for infrastructure projects, mainly railroads and highways.

Freitas is a close ally of former far right-wing president Jair Bolsonaro, who left office Sunday, and has shown signs that he wants to mark a difference with Brazil’s new leftist leader Luiz Inácio Lula da Silva.

If the governor succeeds in his plans to accelerate concessions and privatizations, he could emerge as a serious contender for the 2026 presidential elections.

"The likelihood is that the richest state in the country will act like a laboratory to show the results of a government policy that defends a reduced state role in the economy, while the federal government defends a model of more government intervention. We will see at the end of this four-year term which produces more results," said Cortez.

Echoing Cortez, Lucas Fernandes, a political analyst at local consultancy firm BMJ Consultores Associados, sees Freitas as a potential name to challenge the left-wing federal government. 

"Freitas tends to place himself in a less radical position on the right, which could attract centrist forces to his side in the next presidential election. In addition, adopting an agenda to advance infrastructure and reduce the times to approve environmental licenses is unlikely to meet much opposition from environmental groups, since most of the projects in São Paulo are not in such environmentally sensitive areas like in other parts of the country," Fernandes told BNamericas.