Brazil Unveils Transport Bids to Boost Economy

Brazil announced an economic stimulus scheme Wednesday to modernize the country's aging infrastructure by selling road and railway concessions to the private sector.

The private investment measures come amid an economic slump -- growth is forecast at just two percent this year -- and as the country prepares to host the 2014 World Cup and the 2016 Olympic Games.

"Today, we begin a new stage of our development model," President Dilma Rousseff announced at an event attended by several large companies.

"My government recognizes private sector partnerships as essential for growth," said the president, of the leftist Workers' Party.

"We're not getting rid of public assets; we are making partnerships to expand the infrastructure of the country."

She said the private concessions aimed to fix "decades of backwardness and ensure the lowest possible costs" for the people.

Private companies will bid on concessions for 10,000 kilometers (6,200 miles) of train tracks -- through a mix of state and private investments estimated at $45 billion -- and 7,500 kilometers (4,600 miles) of highways, an estimated investment of $21 billion.

"We are creating a national rail network," said Transport Minister Paulo Sergio Passos.

Brazil currently has about 30,000 kilometers (18,600 miles) of railways, according to industry experts.

Mining and energy billionaire Eike Batista, present at the launch, cheered the new initiative.

"Brazil needs to catch up to 20 years" of transportation improvements, Batista said, adding that it was time for the Latin American powerhouse to show it has plenty of viable projects for the international investor.

A recent study by Brazil's National Confederation of Industry found the country's transportation infrastructure is the worst of the BRICS group of emerging nations that also includes Russia, India, China and South Africa.

The government plans to unveil a similar project next week for ports and airports.

In February, Brazil granted a 20-year concession for the three main airports in Sao Paulo and Brasilia.