Brazil Out In Front In The Race For Infrastructure

Brazil will spend in excess of $1 trillion on infrastructure projects in preparation for the 2014 World Cup and 2016 Olympic Games.

With $280 billion already invested since 2007 and a further pledge of $878 billion announced by President Luiz Inacio Lula da Silva's administration, Brazil's preparations for the World Cup in 2014 and the Olympics in 2016 are well underway.

Many thousands of sportsmen and spectators from all corners of the world will be descending on Brazil between 2014 and 2016 and this developing world power is more than prepared to take its place as one of the largest economies in the world. The announcement of this massive infrastructure spend in July 2010 was at the Brazilian foreign affairs ministry.

The funds will be invested in the airports of the twelve host cities, Rio de Janeiro, Sao Paulo, Belo Horizonte, Brasilia, Cuiab, Curitiba, Fortaleza, Manaos, Porto Alegre, Salvador, Recife and Natal. The Brazilian government anticipates the upgrading will be finalized between June 2013 and April 2014, well in advance of the influx of World Cup visitors.

In answer to Lula da Silva's remaining opponents, the President on Monday dispelled any lingering doubts as to the Government's commitments to infrastructure reform with the official launch of the bidding process for the country's ground-breaking bullet train scheme.

The 510km bullet train route will span the area between Rio de Janeiro and Sao Paulo in a maximum journey time of just 95 minutes. The area is home to some 40,000,000 inhabitants, which equates to twenty percent of the Brazilian population. Coupled with this are many corporations and industries that together generate more than a third of Brazil's GDP. An extension to Campinas, 50 miles from Sao Paulo has additionally been planned with the purpose of providing access to the center of Brazil's wealthiest producing and farming area.

At the launch President Lula da Silva said that provision of a strong railway network has been overlooked for the last 15 years. He went on to promise that the government would "furnish Brazil with good roads, waterways and train line systems, and this process has begun".

The Brazilian government will in most cases retain a majority shareholding but is looking to form joint ventures with domestic and international companies. Interest has been expressed by companies in Europe, South Korea, China and Japan.

As is common practice for World Cup and Olympic venues, the new stadiums and associated infrastructure works have been planned to contribute domestically for many years after the games have been held.