Celebrated by the economic team as a sign of the strength of the private sector, figures referring to investment commitments in infrastructure projects in Brazil through concessions organized by the Jair Bolsonaro administration were boosted by Petrobras, a state-owned company controlled by the federal government, owner of 50.26% of the company’s common shares. An internal survey by the Ministry of Economy shows that more than half of the promise of investments in the country in the next ten years was made by the oil and gas sector, which has a massive presence of Petrobras.
Of the BRL 925 billion in investments planned in all areas, approximately BRL 487 billion refer to the oil sector —52.7% of the total. The data, compiled from the Investment Monitor of the Ministry of Economy, were confirmed by two sources in the ministry on condition of anonymity due to the period of electoral closure in the government.
Two operations in particular have substantial amounts, accounting for most of the BRL 487 billion in investments promised by the sector: the Búzios block, worth BRL 230 billion, in which Petrobras has a 90% stake; and the sixth round of bids under the pre-salt production sharing regime, worth R$146 billion, with 80% of the state-owned company’s share.
According to one of the sources, the oil sector is historically expressive in the share of private investments in the country. In recent years, these expenses have been concentrated in pre-salt exploration projects.
Sought by Reuters, the Ministry of Economy said the data refer to investment values ​​of structured contracts authorized by the federal government, including concessions, public-private partnerships (PPPs) and leases, among others. The ministry justified the presence of Petrobras in the survey. “If we considered Petrobras’ participation as public investment, we would be misaligned with the fiscal statistics, produced by the National Treasury and Central Bank, which do not consider the state-owned company within the concepts of General Government and non-financial Public Sector”, he said.
Petrobras stated that it invests responsibly, allocating resources to “projects with full potential to generate value” and contributions to its stakeholders. According to the state-owned company, the plan for the next five years provides for investments of US$ 68 billion (R$ 356 billion), “confirming the company as one of the largest investors in the country”.
Although it is controlled by the government, Petrobras is listed on the stock exchange, has governance codes and follows market policies, which has led it to be criticized by President Jair Bolsonaro, who forced changes in the company’s command during the current administration. Complaints usually focused on the state-owned company’s profit level and fuel pricing policy.
OTHER SECTORS
The list of the largest shares of investments promised to the country follows with the railways, in an amount of R$ 159 billion In ten years (17.2% of the total) and electricity, with R$ 98 billion (10.6%) . There are also investment commitments of BRL 52 billion in highways (5.6%), BRL 43 billion in water and sanitation (4.6%) and BRL 42 billion in telecommunications (4.5%). Other areas add up to around R$ 44 billion (4.8%).
The data consider all projects contracted or auctioned with the participation of the federal government, including some state tenders that have been structured by the Federal Government. The numbers do not include exclusively state or municipal concessions. One of the sources also explained that the numbers refer to the initial investment commitment established in the contract for the construction of the assets, not including investments related to the operation of the enterprise or replacement of assets.
AXIS CHANGE
The current government’s economic team advocates a change of axis in investments in the country, amid the exhaustion of the public machine’s spending capacity, encouraging the private sector to expand its presence in infrastructure projects.
The position contrasts with the view of former president Luiz Inácio Lula da Silva, who leads the polls for voting intentions for the October presidential elections — Bolsonaro, who is seeking re-election, appears in second position. The PT team defends a resumption of the capacity of public investment as a way to stimulate the economy, justifying that the measure would also boost the private sector.
The total number of investments by companies has been routinely used in public events by the Minister of Economy, Paulo Guedes, as a way of illustrating this shift in the private sector. He justifies that the new scenario was made possible by changes in infrastructure legal frameworks, with measures proposed and approved by the current government.
“We have 890 billion of investments already contracted, investment commitments, large Brazilian and international companies paid us R$ 160 billion as a down payment for the right to invest R$ 890 billion over the next ten years”, he said at an event in August.
Since that speech, the numbers have been updated by the folder. In addition to reaching R$ 925 billion in investments, the value of grants for projects reached R$ 177 billion, according to data from the ministry.
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
