Bolsonaro sets new P3 fund in motion

Brazil President Jair Bolsonaro has signed a law creating a new fund that aims to secure over $176bn in investment through P3s and concessions.

Brazil President Jair Bolsonaro has signed a law creating a new fund that aims to secure over $176bn in investment through P3s and concessions.

Dubbed the Sustainable Regional Development Fund, the new body is a restructuring of the Infrastructure Guarantee Fund, and will provide over $130m towards the structuring and development of new projects.

Alongside project creation, the new fund will give grants to cover risks and allow the participation of seed funding from investment funds regulated by the Brazilian securities and exchange commission.

According to government estimates, for each $1m invested by the fund, over $100m will be returned in investment – with over $176bn eyed as the total impact for the fund. Among the sectors earmarked are basic sanitation, urban mobility, solid urban waste management and public lighting.

"This fund represents an important advance for the development of infrastructure in Brazil, as we are creating conditions for the Union, the states, the Federal District and the municipalities to produce quality projects that attract the private sector to carry out investments that improve and expand public services,” said Rogério Marinho, minister of Regional Development.