Brazilian government to fund sanitation and urbanisation projects

Brazilian president Luiz Inácio Lula da Silva has signed contracts worth BRL 2.7 billion (US$ 1.6 billion) with 12 state governors for sanitation and urbanisation works, according to government news agency Radiobrás.

The projects, which will take place in the 12 in state capitals and surrounding metropolitan regions, form part the Brazilian government's growth acceleration program (PAC) initiative.

The 12 states include Amapá, Acre, Tocantins, Ceará, Espírito Santo, Minas Gerais, Paraíba, Rio de Janeiro, São Paulo, Paraná, Rio Grande do Sul and the federal district (DF), home to the capital Brasília.

Of the total, BRL 1.4 billion (US$ 852 million) has been earmarked for construction of Ceará state capital Fortaleza's subway, together with housing projects in seven states.

According to Radiobrás, contracts worth BRL 1.3 billion (US$ 791 million) have already been signed to start basic sanitation works in 10 states.

Funding for the projects must be secured before the mayoral elections later this year. Brazilian law forbids the signing of any work contract for three months before the elections.

According to Radiobrás, federal savings bank Caixa Econômica Federal has until the end of this month (June) to release over BRL 1.5 billion (US$ 913 million) in funding for the projects.