Growth acceleration program to aim at housing, urban mobility, energy

With an estimated BRL 1.7 trillion in public and private investments, the Brazilian government’s new Growth Acceleration Program—or PAC in the original Portuguese acronym—was unveiled Friday (Aug. 11) during a ceremony at Rio’s Municipal Theater attended by President Lula and ministers.

Among its top goals are generating employment and income, reducing social and regional inequalities, and boost economic growth. According to the government, the plan is strongly committed to the country’s ecological transition and re-industrialization, in addition to growth with social inclusion and environmental sustainability.

Of all the funding for the revamped edition of the PAC, BRL 371 billion should derive from the federal budget; the private enterprise will contribute BRL 612 billion; state-owned companies, in turn, should go in with BRL 343 billion—chief among them Petrobras—and a further BRL 362 billion is set to come from other sources. A total BRL 1.4 trillion is expected to be invested by 2026, with the remainder coming afterwards.

Commitment

While presenting the new PAC, President Lula described its role as bringing the state’s capabilities at the service of the dreams of the Brazilian people.

He assured that the federal government has made a moral commitment to resume the construction of paralyzed works.

“We’ll no longer tolerate that the dream of a new school, a new hospital, new public facilities, and a new road becomes the nightmare of an unfinished project left to gather dust,” he stated.

The initiative marks the beginning of his third term in office, he said. “From now on, the ministers will have to fulfill what’s here and work hard so that we can bring the initiative to fruition,” he said.

He also pointed out that all governors opined on the priority works for each state. “They were the first to have a say,” he remarked, recalling that the PAC also took into account key contributions from the private sector.

Resource allocation

Investments will be funneled into nine categories. With BRL 610 billion, the largest investment in the new PAC is aimed at Sustainable and Resilient Cities, which includes the construction of new housing units under the Minha Casa, Minha Vida affordable housing program, plus mortgages. Funding will also be earmarked for the sustainable modernization of urban mobility, slum upgrading, sanitation and solid waste management, slope stabilization, and flood control.

Energy Transition and Security, the second priority, will receive BRL 540 billion to expand the nation’s capacity for electricity and the production of oil derivatives and low-carbon fuels. Eighty percent of the increase in the electricity capacity should originate from renewable sources.

Investments in highways, railroads, ports, airports, and waterways add up to BRL 349 billion under Efficient and Sustainable Transportation, with the goal of slashing the costs of production for the domestic market and bolster Brazil’s competitiveness overseas.

Digital Inclusion and Connectivity, a new category, will be allocated BRL 28 billion, aiming to bring high-speed internet to all public schools and health care stations. In addition to the expansion of Brazil’s 5G network, 4G should also reach highways and remote regions.

For Health, investment is posed to stand at BRL 31 billion, with the construction of new facilities, including basic care stations, polyclinics, maternity hospitals, and the purchase of more ambulances. Funding should also be directed at strengthening the supply of vaccines and blood products, as well as at telehealth.

In Education, resources will be put toward the construction of daycare centers, full-time schools, and the modernization and expansion of federal universities, with BRL 45 billion.

Adding to the efforts for Education is Social and Inclusive Infrastructure, which is expected to ensure Brazilians’ access to cultural, sports, and leisure spaces, focusing on social interactions and the reduction of violence, with an investment of BRL 2.4 billion.

Investments in water resources, the revitalization of hydrographic basins in integrated preservation and recovery come under Water for All, with BRL 30 billion. The objective here is to guarantee access to quality water in the appropriate amount for the population, especially in Brazil’s hardest-to-reach areas.

As for Defense, BRL 53 billion will be aimed at equipping the country with cutting-edge technology and increase Brazil’s national defense capacity.