Category: Public policy

Information related to political affairs that have an impact on Brazil’s economic development.

Brazilian Government aims to double railways by 30%

The share of railways in the total transportation in Brazil should reach more than 30% in up to eight years. This is the federal government’s plan. Currently, the railroad mode accounts for 15% of the Brazilian transport ecosystem. The Ministry of Infrastructure argued that the achievement of this goal should be guaranteed from the railroad concessions already planned.

Brazilian Government stops using $6.3 mm fund for the Amazon

The Brazilian Government has stopped using million-dollar resources already donated by other countries to combat crimes in the forest. More than R$33 million ($6.3 mm) already donated to Brazil through the Amazon Fund, a programme financed with money from Norway and Germany, are available for two actions: one to fight fires by Ibama and the other for the Ministry of Justice to expand the work of inspection in the forest by the National Force. These resources, however, are stored in the BNDES.

Brazil’s largest companies deliver manifesto to end Amazon deforestation

Leaders of 38 major Brazilian companies have delivered a ‘manifesto’ to Vice-President, Hamilton Mourão, stating their concern about the lack of swift action on the part of the Brazilian government in relation to the deforestation of the Amazon Forest. The leaders declare themselves concerned about the negative reactions of Brazilian investors, and reaffirm their commitment to sustainable development.

Minister of Agriculture states that “Agribusiness doesn’t need the Amazon”

According to the Minister of Agriculture, Tereza Cristina, agribusiness does not need the Amazon to expand its production in the country. This statement is made at a time when Brazil is leading record of deforestation in the largest tropical forest on the planet. The minister says that part of the criticism is related to commercial interests and competition, and that agro, despite the pandemic, has increased exports and domestic consumption.

Agricultural Front to debate new Brazilian Agribusiness Law

The Parliamentary Front of Agriculture will promote, on Thursday, a new debate on the Law of Agriculture focused on the issue of Rural Credit Notes and Equalisation of Interest. The issue and electronic transactions of Agro securities have already been discussed; the changes to the Rural Product Certificate (CPR); and agribusiness bonds. In February, the House of Representatives approved a provisional measure (MP 897/19), which gave rise to the Agro Law.

BNDES estimates $3.8 bn of investment in sanitation sector auctions

BNDES is planning to hold 3 privatisation auctions in the sanitation sector by the end of the year: The water and sewage concessions in Alagoas and Rio de Janeiro, and the PPP (public-private partnership) in the city of Cariacica (ES). The estimate is R$ 36 billions ($6.8 bn) of investment throughout the concession in the areas that will be granted to the private initiative.

Petrobras recovers another $50 mm from Car Wash Operation

Petrobras received another R$265.1 million ($50 mm) as a result of a leniency agreement. This time, the agreement was signed by Technip Brasil and Flexibras, companies of the Technip Group. Thus, the total funds returned to the company exceeded the amount of R$4.5 billion ($849 mm), as a result of the investigations of Car Wash Operation.

Tax reform may guide “green reconstruction” in Brazil

The tax reform, expected to be voted in August, could be a boost for “green recovery” in Brazil. Sustainable economy, clean energy and low carbon emissions have been a new paradigm hunted in some countries that have already surpassed the peak of the new coronavirus. For the coordinator of the environmental front, tax reform is one of the ways to redirect public resources to this change.

Federal Public Debt rises to $800 bn

The cooling of the turbulence caused by the new coronavirus pandemic and the low salaries made the government’s debt rise for the first time in two months. The Federal Public Debt (DPF), which includes the federal government’s internal and external indebtedness, rose 2.17% in nominal terms in May compared to April. The stock rose to R$ 4.251 trillion ($ 800 bn).

Brazil proposes $133.89 bn for new sanitation project

The new sanitation project aims at the universalisation of basic sanitation by 2033. Currently, 100 million people do not have sewage collection and 34 million are without drinking water. Currently, only 6% of cities are served by private initiative. In the other 94%, the service is provided by state-owned companies. The estimated cost of the project is R$700 billion.