Infrastructure Investment in Northeastern Brazil / by Chris Cote

Infrastructure Investment in Northeastern Brazil

Challenges and Opportunities in a Developing Region

A BrazilWorks Briefing Paper

Prepared by Chris Cote and Mark S. Langevin, Ph.D.

Summary

  • The Northeast region is growing faster than the national average due to a high performing service sector, retail sales, and tourism.
  • Brazil’s current infrastructure deficit is the result of several decades of declining public and private investment.
  • To lessen this deficit, the Brazilian Federal Government has launched two national Growth Acceleration Programs (PACS 1 and 2) since 2007 to remedy insufficient physical infrastructure, especially in the energy and transportation sectors. 
  • Transportation investments focus primarily on road and rail improvements, but the new port concession law should attract increased private sector investment to an expanding list of ports.
  • Public investments in airport expansion are needed to confront the immediate challenge of the 2014 FIFA World Cup and the long-term growth in passengers and the tourism industry.
  • Energy investments in the region are concentrated in oil refineries, thermoelectric plants, wind energy farms, and expansion of the transmission system.
  • The private sector must take a greater role in expanding and improving transportation and energy infrastructure throughout the region to guarantee sustained economic growth.
Read the entire briefing paper here: