Infrastructure, Lula's government plans to invest over 300 billion euros for major works and road construction

This is an important opportunity for Franchetti S.p.A. which has worked in Brazil for several years alongside the largest public concessionaires.

30 August 2023

Among the priorities of the Brazilian Government is the relaunch of the "Growth Acceleration Pact" (PAC) program, which provides for public and private investments of 1,700 billion reais (about 317 billion euros) for major works, particularly in the sectors of construction and energy efficiency.

Around a third of the investments announced are expected to come from partnerships with the private sector and a fifth of the funds are expected to be provided by public companies.

Around 610 billion reais (corresponding to about 114 billion euros) will be allocated to the construction sector, in particular for the financing of social housing.

The new PAC also envisages 540 billion reais (about 100 billion euros) invested in energy and 349 billion reais (about 65 billion euros) in transport, in particular for the construction and maintenance of roads.

It is expected that 1,300 billion reais will be invested by the end of Lula's third term in 2026 (about 242 billion euros) and a further 400 billion reais thereafter.

Franchetti S.p.A. has been working for several years in Brazil alongside public and private companies as well as institutions. In recent years the Group has developed a detailed knowledge of the country's roads and construction sector, collecting and processing data on which the Group's engineering team develops technological solutions and predictive maintenance software compliant with the highest standards.

Franchetti S.p.A. - which in 2022 achieved 39.3% of annual revenues in Brazil - is ready to put its know-how relating to the predictive maintenance of road networks, bridges and viaducts at the service of Brazil, to make local public transport assets safer and more efficient and at the same time helping local institutions to better direct financial resources for the future.