São Paulo to invest record US$6bn in infrastructure projects in 2025

São Paulo state is planning record investments in infrastructure projects next year.

The local government submitted for approval by state legislators its 2025 budget of 372bn reais (US$68bn).

Of the total, 33.5bn reais will be directed to initiatives linked to infrastructure projects, with the aim of promoting development and improving the quality of life of all São Paulo residents, the state government said in a release.

"Among the main investment axes is the expansion and modernization of the metropolitan transport network, which will have more than 12bn reais in resources," it said.

Projects due to receive investments are extensions to subway lines 2, 4, 5, 6, 9, 15 and 17, the intercity train, PPPs for lines 11, 12 and 13, and the light rail project in the coastal region of the state.

The state also plans to invest 4.3bn reais in road widening works and another 1.4bn reais in flood prevention and water security, among others.

The 2025 budget is boosted by the privatization of Sabesp, the largest water company in the country, earlier this year.

Governor Tarcísio de Freitas, who was Brazil’s infrastructure minister under the previous Jair Bolsonaro administration, has been advancing investments in infrastructure through concessions and PPPs. 

The planned investments in infrastructure are likely to bolster De Freitas’ political image.

"The governor of São Paulo is positioning himself as a politician who defends public spending efficiency and the combination of public and private investments, avoiding entering into political discussions related to other areas, which involve antagonistic forces from the right and left, despite him being a right-wing politician," André Pereira César, a political analyst at Hold Consultoria, told BNamericas.

"With this stance, which generates less controversy, he will gradually position himself as a very strong candidate in the 2026 presidential elections because he can attract votes from centrist voters," added César.

De Freitas took over as governor in January 2023, with the support of Bolsonaro, who was defeated by Luiz Inácio Lula da Silva in the presidential election the previous October.

According to electoral rules, a governor can run for reelection once.

In 2026, Brazilians will go to the polls to vote for president, governors and lawmakers.

Left-leaning Lula is expected to run for reelection, but it is still unclear who will be the right’s candidate as Bolsonaro is prohibited from running for any public office until 2030 after the electoral court alleged he illegally used the media during the 2022 campaign.

"Until recently, the most likely scenario was that Tarcísio de Freitas would try to be reelected in São Paulo in 2026 and the path would be clear for Lula's reelection as president, but given the recent surveys that show high levels of rejection of Lula, I see a growing chance of De Freitas becoming a candidate for the next presidential election, and having a real chance of victory," said César.