BNDES expects auctions to mobilize R$140bn in investment this year By Paula Martini and Debora Leite — Rio de Janeiro 02/11/2026 04:00 AM Updated 4 hours ago Aloizio Mercadante — Photo: Keiny Andrade/Valor Brazil’s development bank BNDES will launch a public call for infrastructure projects and a dedicated program for the rail sector, the bank’s president Aloizio Mercadante said on Monday. Lower inflation, rate-cut outlook lift business confidence Central Bank minutes support 50-basis-point rate cut in March According to Mercadante, the infrastructure call will follow the model of a public tender launched in 2025 that allocated R$4.3 billion to decarbonization and the energy transition. “We will launch a call like that for infrastructure,” he said during a seminar at BNDES headquarters. “It will not be smaller than the climate call. Infrastructure requires a great deal of capital and investment, and we will have to raise resources,” he added. Mercadante said the rail sector will play a central role in infrastructure financing. According to him, eight railway auctions are expected this year, with an estimated R$140 billion in investments. To accelerate projects in this segment, BNDES is considering modernizing its credit mechanisms and extending loan maturities and grace periods. “A strong investment cycle in railways is coming, and we need to modernize some mechanisms in terms of maturities and grace periods. We are designing new initiatives,” he said. Mercadante also commented on the benchmark interest rate Selic, currently at 15%, saying interest rates are “ready to fall,” which he said, “will significantly improve investment and business activity.” Cities Minister Jader Barbalho Filho said Brazil has entered a new phase of infrastructure investment. According to him, the government has R$8 billion in FGTS severance funds approved for sanitation projects and another R$8 billion earmarked for urban mobility. Barbalho Filho said several projects were stalled when he took office in 2023. At the time, for example, 87,000 housing units under the Minha Casa Minha Vida program had been halted. For 2026, the minister projects the contracting of 1 million new housing units, reaching 3 million units over the four-year government term (2023–2026). He attributed the momentum to the program's expansion, which now finances homes for families earning up to R$12,000 per month. Another 1 million units are planned for 2027. Transport Minister Renan Filho said the government is working to increase private-sector participation and speed up its concessions pipeline. According to him, Brazil has the largest portfolio of highway projects under structuring globally, alongside changes to financing models. “We will invest R$65 billion, but we will contract R$400 billion with the private sector. That is the difference,” he said. Gilson Finkelsztain, president of B3 stock exchange, said infrastructure projects are likely to remain the main draw for Brazil’s fixed-income and equity markets. He noted that 39 infrastructure auctions are scheduled, with more than R$70 billion in investments expected by April. Finkelsztain agreed that a decline in the Selic rate could help boost the sector, alongside private credit. “When real interest rates fall, more investment will come. There will be less uncertainty around fiscal policy and the government’s commitment to public finances,” he said.
