Brazil's BNDES to provide over US$5bn for road projects this year

Brazil's federal development bank BNDES is expected to provide 30bn reais (US$5.26bn) for highway projects this year, up from 23.5bn reais in 2024.

"Brazil has the largest volume of highway concessions in the world and a secure and effective regulatory framework, conditions that attract local and international companies and investors," BNDES president Aloizio Mercadante said in a statement.

"Until the previous government, the historical average of auctions was 1.8 per year. Last year, seven auctions were held, and in 2025, 15 auctions are planned, which are expected to mobilize 163bn reais in investments, covering nearly 8,500km." 

BNDES has been active in financing highway projects both through direct loans to companies and by investing in debentures issued by concessionaires.

In addition to fostering investments in highways, the bank's participation in securing financing for projects is part of the government's attempt to attract new bidders for the contracts to be offered as it sees greater competition in auctions leading to lower tolls for users.