Brazil is the 9th largest economy in the world and owns well-developed agricultural, mining, manufacturing and service sectors. Development in infrastructure is being driven by public-private partnerships (PPP), when the Brazilian construction industry is being backed by strong government investments. Brazil can capitalize on its rising trade with the Arab world and expand it on numerous fronts, including the construction industry. The leading 10 construction companies are all long-established and significant players in Brazil. Moreover, the Programa de Acelera¸ão do Crescimento (PAC) – the federal government's growth acceleration plan that was unveiled in January 2007 – is expected to stanch faster completion of the construction projects that are in the pipeline. The program is also aimed at projects in the oil and gas, transportation and sanitation sectors, pointing to boost BRL500 billion (US$235 billion) of infrastructure development during 2007-2010.
Besides, private investment generated through PPP has been beneficial only at the state level. There is inadequate public investment in the nation's transport infrastructure, leading to slackened progress in the development of roadways and port terminals. The laws do not spur foreign companies, which stipulate that the latter need to either be stated in Brazil or have a Brazilian partner in order to provide construction services.
In spite of the risks, BMI forecasts an average construction-industry growth rate of 6.24% during 2007- 2011. The government's enterprise to perform the PPP model in infrastructure-connected projects is anticipated to drive foreign investments in construction and boost the industry growth rate. Brazil can insure long-term financing in spite of opportunities of lead time in infrastructure developments due to regulatory and environmental licensing problems.
According to the BMI Business Environment Rankings, Brazil ranks the nation 4th out of the seven states included from Latin America.
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