Resumptions and new beginnings

Advances in the infrastructure sector under Lula’s third administration

Abstract

This article analyses recent advances in Brazil’s infrastructure sector during the Third Lula Administration, highlighting the role of the state and public-private partnerships in the re- sumption of investment. It aims to examine the evolution of public and private investment between 2022 and 2026, as well as to assess the measures that contributed to the sector’s recovery. Methodologically, the study draws on data from the Brazilian Association of In- frastructure and Basic Industries (Abdib), official reports, and institutional documents to identify key trends and structural challenges. The findings indicate a significant increase in investment, which, at constant 2025 prices, rose from US$ 36.2 billion in 2022 to US$ 49.93 billion in 2024. This growth was driven by the New Growth Acceleration Program (Novo PAC), the expansion of infrastructure concessions, and the active role of the Brazilian De- velopment Bank (BNDES). The federal program stands out for incorporating sustainability goals, resuming stalled projects, and fostering private investment, while the development bank has consolidated its position as a strategic provider of long-term financing, particu- larly through the creation of Development Credit Notes (LCDs). Despite these advances, investment levels remain below what is required to overcome the sector’s long-standing infrastructure bottlenecks, underscoring the importance of continued regulatory reforms and an expanded capacity for both public and private financing. The article concludes that infrastructure has regained a central role on Brazil’s economic agenda, emerging as a key driver of sustainable and inclusive growth.