RIO DE JANEIRO (Reuters) – A “growth acceleration program” to be launched by Brazil’s President Luiz Inacio Lula da Silva on Friday will include a total 1.7 trillion reais ($347.47 billion) in investments in all states, the government said.
The program, known as PAC, revisits an initiative that Lula introduced in 2007 during his first tenure as president, to boost investments in sectors such as energy, logistics, and urban and social infrastructure.
The program was later expanded under his successor, former President Dilma Rousseff. Critics say it incurred substantial spending, exacerbating the fiscal crisis, while failing to bring fundamental infrastructure changes.
But the government said its new version would be marked by a strong partnership between the public and private sectors, with more than 1.3 trillion reais estimated to be disbursed by 2026.
According to a statement, 371 billion reais are set to be invested by the federal government, while state-owned firms such as oil giant Petrobras would inject 343 billion. The private sector, it added, is seen investing a total 612 billion reais, added.
The program is aimed at “creating jobs and generating income, reducing social and regional inequalities in an effort tied to the ecological transition,” the government said.
Rio de Janeiro will be the state getting the largest investments from the program, with 342.6 billion reais set to be directed to several projects mostly focused on oil and gas, according to the statement.
Sao Paulo, the country’s wealthiest and most populous state, comes second with an estimated 179.6 billion reais being invested in major infrastructure projects.
($1 = 4.8925 reais)
(Reporting by Rodrigo Viga Gaier in Rio de Janeiro and Gabriel Araujo in Sao Paulo; Editing by Steven Grattan and Frances Kerry)
