Brazil's recently-announced R$133bn road and rail improvement programme will need to overcome a track record of chronic under performance to win investor trust. The news flow on projects to date is not helping.
The Federal government's Sistema de Administração Financeira (Siafi) has revealed dismal performance in meeting road and rail targets this year. Based on data from the Institute of Applied Economic Research (IPEA), R$13.627 was supposed to be spent on roads this year but only 48.3% has actually been executed to date (with just over two months to go). Less than 27% of planned rail investments have been realised with some R$740m spent. This is the worst performance since former president Lula was in power. Waterways are in no better shape. Carlos Campos, infrastructure coordinator at IPEA, pointed to the low quality of engineering ideas in projects, difficulties in expropriating property and licensing. Brazil has a long way to go if it is to engender investor confidence.
Valor carries a full article on the subject (in Portuguese):