Minas Gerais state to invest over US$600mn to improve roads

Brazil’s Minas Gerais state unveiled a plan to invest 3bn reais (US$612mn) this year to improve the conditions of roads.

Minas Gerais is the state with the largest extension of roads in the country, with 26,000km. 

“We know the challenge of restoring the quality of such an extensive road network, but we believe we’re on the right path," said Pedro Bruno, state secretary for infrastructure, mobility and partnerships, in a statement.

The improvement works include recovery of roads, the construction of bridges and the paving of stretches that are not asphalted.

The investment planned for this year is double the amount invested in 2023 by the state’s road department (DER-MG), and has generated positive expectations from some business leaders.

"During 2023 we saw a series of investment announcements for various projects and initiatives across the country in the area of infrastructure and construction, but many of these announcements have not yet come to fruition and have not resulted in an increase in demand for materials, such as steel. I hope that in 2024 we will have a year in which these investments advance faster," Ian Corrêa, the VP of Brazilian steel conglomerate Grupo Aço Cearense, told BNamericas.

ROAD CONCESSIONS 

Minas Gerais also announced that it plans to advance with the offering of more concessions to attract private sector investment for roads.

The state has contracted studies to structure a third round of concessions, which will cover more than 2,400km of roads in the northwest regions, along with the Zona da Mata area and the metropolitan region of capital Belo Horizonte.

"The new road lots will involve investments of nearly 11bn reais and will have the potential to generate approximately 240,000 jobs," the state government said without providing a timetable for the auctions.