Brazil proposes US $64.5 Billion infrastructure plan reports IRJ

 

IRJ report

So far, zero economic feasibility assessment to back up the strategic concept planning.

About one third of total federal plan is for rail projects.

Details that exist can be found at: http://www.railjournal.com/index.php/central-south-america/brazil-launches-dolus-645bn-national-infrastructure-plan.html?channel=536

A few of my critical observation are here:

1)

The government’s previous attempt to attract private funding for rail projects under the 2012 Logistics Investment Programme (Pil) was a complete failure as it did not receive any bids.

2) Under this 2015 new plan, Brazil’s National Bank for Economic and Social Development (BNDES) will be allowed to provide finance at low interest rates for up to 70% of the cost of a project provided there is also some private funding.

3) Most of the railway investment will be for new line construction.

— Reais 7.8 billion for 2 sections of the North-South Railway

— Palmas – Anápolis and Barcarena -Açailandia;

— Reais 4.9 billion for Anápolis – Estrela D’Oeste – Três Lagoas;

— Reais 9.9 billion for Lucas do Rio Verde – Mirituba.

— Reais 7.8 billion for the Rio de Janeiro – Espírito Santo railway;

4)

A major new speculative Trans-Andes 3,500 km long line; — Reais 40 billion for Brazil section of new line line to Peru

5)

Expansion of capacity on existing Brazil rail lines

— Reais 16 billion for track-doubling schemes, etc.

6)

“BYE BYE to OPEN ACCESS!

The federal government appears to have abandoned the European open access business model. There is no discussion now about the previous proposals to separate infrastructure from operations for new lines with multiple freight operators.

Instead, future Rail freight concessions will mirror those on the existing network with one company responsible for maintaining and operating each line — as in the North American model.

The intention of the government is now to increase confidence in these projects for the needed private investors.

What do you think of this?

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