Brasilia, January 29th Electric – Brazilian President Luiz Inacio Lula da Silva has unveiled a $350 billion infrastructure investment program aimed at boosting economic growth and accelerating the country’s green transition. The plan, named the Growth Acceleration Program (PAC) – a revival of a similar initiative launched during Lula’s previous presidency in 2007 – will focus on transportation, sanitation, and energy transition projects.

Most of the investment – $264 billion – will be allocated through 2026, with funding coming from a mix of federal funds, public-private partnerships (PPPs), and concessions. Specifically, $220 billion will come from public funds, while $125 billion will be contributed by the private sector. Energy transition projects will receive the largest share of funding, totaling $110 billion, as the government seeks to prioritize sustainable economic development.

Brazil’s state-controlled oil company, Petroleo Brasileiro SA (Petrobras), will play a key role in the program. The oil giant has a $78 billion five-year strategic plan and is considering increasing its investment for the 2024-2028 period, with up to 15% of its total investments earmarked for low-carbon projects. The program aims to replicate the success of the 2007 PAC, which funded hundreds of highways, bridges, hydroelectric projects, and transmission lines.

However, the new plan faces challenges from the legacy of the original PAC, which was marred by corruption investigations that led to the bankruptcy of several infrastructure companies. Despite this, the Lula administration is confident that the updated program, with a focus on environmental sustainability and transparency, will drive economic growth and create jobs.