São Paulo state to boost 2022 investments by over 20%

São Paulo is planning to invest 21% more this year as the state’s infrastructure agenda is likely to be used by governor João Doria in his bid to become the country's next president.

Brazil will hold general elections in October. 

The country’s wealthiest and most populous state will this year invest 27.3bn reais (US$4.8bn), up from 23.3bn in 2021. 

“With responsible administration of public funds and economic growth well above the national average, we will also have the largest volume of investments in the history of the state of São Paulo. It’s a direct investment in health, education, housing, infrastructure, public safety, logistics, social protection and job creation," Doria (pictured) said in a press release.

Doria will run as the candidate for centrist party PSDB and he has been a strong critic of the government of right-wing President Jair Bolsonaro.

The administrations of both Doria and Bolsonaro are focused on attracting investments from private firms to the infrastructure sector. The difference is that Doria is also promoting the increase of public sector investments and public-private partnerships, while Bolsonaro’s main focus is to open up more room for private players by reducing the role of the public sector in the economy. 

As part of its agenda, São Paulo plans to launch four PPPs and concessions in 2022 that are expected to generate investments of up to 4bn reais. 

"We’ll have auctions for PPPs and concessions in the area of highways that will be for the Rodoanel Norte [beltway]. We’ll also have a concession for coastal ferries, a public-private partnership for the management of 60 schools and a concession for three state parks," Tarcila Reis Jordão, the state’s deputy secretary for partnerships, told BNamericas in a recent interview. 

"We have a consolidated PPP and concession portfolio in the area of transportation and mobility, and we’re now seeking more diversification," she added.

Recent surveys indicate that the main contenders in the presidential election will be Bolsonaro and former leftist president Luiz Inácio Lula da Silva, who is currently leading the polls.