Piauí state eyes infra sector in plan to raise US$460mn for projects

Legislators in Brazil’s Piauí state authorized the local government to raise up to 2.5 billion reais (US$460 million) to finance infrastructure projects and other areas.

The funds will be obtained from federal lender Banco do Brasil.

"The loan will be applied to transport infrastructure works, urban mobility, urbanization, public security, health, water infrastructure and digital transformation," said the state government in a statement.

One project that will benefit from the loan will be the light rail system of state capital Teresina, which is currently undergoing works to upgrade the existing network and stations.

In July, the state announced an initial investment plan worth 193mn reais for the system. The project includes widening the existing 13.5km line, expanding capacity to 12,000 passengers per day from the current 4,000.

The project’s second stage, worth 390mn reais, to boost daily capacity to 48,000 will see line upgrades and safety measures, widening of the rail bridge over the Poti river and the purchase of five new trains. The execution of this stage will be the responsibility of state-owned rail and logistics firm Companhia Ferroviária e Logística do Piauí (CFLP).

Other projects that will be financed by the loan are road paving, repaving, revitalization and construction of public parks, streetlighting and hospital upgrades, among others.