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Lula announces 235 billion USD plan to rebuild Brazil's infrastructure
AFP
BRASILIA
Petroleumworld.com 01 23 06President Luiz Inacio Lula da Silva announced on Monday a 235-billion-dollar public and private investment program for infrastructure over the next four years to fan Brazil's economy.
The state will spend 31.9 billion dollars between 2007 and 2010 while public and private firms are expected to fill the gap, said Finance Minister Guido Mantega.
The funding will focus on three sectors: energy, transportation and housing. About 55 percent of the endowment will go to oil and gas projects, and boost electricity generation.
The funds would also go to building or rebuilding 45,337 kilometers (28,171 miles) of roads and 2,518 kilometers (1,564 miles) of rail lines, as well as 20 airports and 79 ports to open up a bottleneck for mining and agricultural exports -- the country's main commodities.
Lula was reelected by a landslide in October, promising to tackle endemic poverty while spurring economic growth, which has lagged at an average 2.6 percent in recent years.
His economic plan stipulates growth of 4.5 percent in 2007, and five percent in 2008. Inflation (3.14 percent in 2006) meanwhile would rise to 4.1 percent in 2007 and 4.5 percent in the following three years.
"Smart growth must include a balanced budget, debt reduction and lesser vulnerability to outside forces without inflation or price controls," said Lula.
But Brazil must also "diminish inequalities between its people and regions, and grow while redistributing wealth more fairly," he added.
The massive expenditures, he said, would be offset by better fiscal management.
AFP 22 1649 GMT 01 07
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