Infrastructure Alert | Brazil Investment Opportunities

Infrastructure Alert | Brazil Investment Opportunities

What to keep an eye on

As attention is turning again to emerging markets, Brazil is a strong investment destination. International players are keenly waiting for the new government to put into action its campaign promises, especially the social security reform. Should things take off well, a significant increase in foreign direct investment is expected in the short term. Internally, investment is gaining momentum and the players present in the Brazilian market are positioning themselves. Coming back to the reforms, things seem to be flowing in the right direction, notwithstanding the expected turbulence to be created by the opposition. Presentation of the social security reform plan to Congress is imminent.

There is a myriad of investment opportunities at Federal, State and Municipal levels, in various stages of maturation. These are the ones we suggest to keep an eye on:

  • Offshore wind farms: the Senate has approved its regulation, and now the Lower Chamber is reviewing it. It is a new investment frontier.
  • Water and sewage: the State of São Paulo, Brazil’s economic powerhouse, plans to privatize SABESP (the state-owned water and sewage company) and the State of Rio Grande do Sul is finalizing the structure of a large PPP in the Porto Alegre metropolitan area.
  • Toll road concessions: the State of São Paulo announced a package of 1.200 km, while the Federal Government has a big pipeline. Just recently, it signed the concession contract for RIS (the South Integration Road), and now will tender the concession for road BR-364/365/MG/GO - Uberlândia a Jataí.
  • Railroads: still in logistics, the first railroad test is about to take place, with the bid for North-South Railroad on March 28. To follow are Ferrogrão, FIOL and the São Paulo railring.
  • Ports: many terminals are in the Federal Government’s pipeline. Worth noting is Suape Port (in Recife, North-East Brazil) container terminal.
  • Social infrastructure: big bids for public lighting in Rio de Janeiro and São Paulo are being prepared.

For more projects or more information, please contact our Infrastructure Department: Frederico Bopp Dieterich or Leonardo Moreira Costa de Souza.