Brazil announces PAC 2

Brazil has announced plans to build US$ 880 billion of infrastructure between 2010 and 2016.

President Luiz Inacio Lula da Silva announced his new economic stimulus programme on Monday. The new plan, ‘Growth Acceleration Programme 2’ or PAC 2, emphasises increasing energy production and building two million new homes.

“PAC 1 and PAC 2 are a commitment by the Brazilian state to the redemption of this country”, said President Lula.

It is believed that some US$ 588 billion will be spent on energy projects. In oil and gas alone, investment should reach US$ 473 billion, and in electric energy generation, US$ 74 billion.

Exploration and production of subsalt reserves should receive US$ 68 billion, of which US$ 35 billion will be invested from 2011 to 2014, and US$ 33 billion from 2014 onwards.

The funds will finance exploration in the following areas: Tupi, Nordeste, Carioca and Iracema.

Guará, Iara, and Baleia Azul fields, as well as the Tupi pilot project, should all start operating within this timeframe. A total of 28 drills are set to be purchased for exploration and production in deepwaters.

PAC 2 also provides for necessary domestic improvements ahead of the 2014 football World Cup, which will be held in Brazil, and the 2016 Summer Olympics, to be held in Rio de Janeiro.

Image from Latin American Herald Tribune
http://www.laht.com

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