In 2024, the implementation of the New Growth Acceleration Plan (PAC) heralds significant expectations, aiming to channel a projected investment of R$ 1.7 trillion into infrastructure.

With contributions from the General Budget of the Union, state-owned enterprises, financing, and the private sector, this initiative seeks to invigorate the nation's development and revive stalled projects.

Within this landscape, it is imperative to underscore the pivotal role of sustainable investments in infrastructure, particularly within the sanitation sector. A study by EY and Abdib forecasts a requirement of R$ 700 billion by 2033 for the sector to achieve universalization goals, attracting a burgeoning interest from investors with a 19.6% real growth compared to 2022.

The New Legal Framework for Sanitation and the commendable outcomes of projects structured by the National Bank for Economic and Social Development (BNDES) have spurred corporate interest in sanitation investments. Collaborative efforts between BNDES and the private sector in project structuring aim to ensure investment security, with forthcoming auctions anticipated in states such as Sergipe, Paraíba, Pernambuco, and Rondônia.

Beyond sanitation, sectors like energy and highways have also emerged as focal points for investor attention. Robust regulation and the established presence of regulatory bodies like the National Electric Energy Agency (ANEEL) make the energy sector particularly appealing. Meanwhile, highway concessions announced by the Ministry of Transportation present attractive investment opportunities.

The new Public Procurement Law introduces prospects for implementing efficient and sustainable contracts, intended to deliver savings to contracting entities and align project practices with Sustainable Development Goals (SDGs) for 2030.

The onset of 2024 witnessed a significant milestone for the infrastructure sector with the enactment of Law No. 14,801/2024, establishing infrastructure debentures to incentivize institutional investor participation, complementing existing incentivized debentures.

The convergence of the New PAC with infrastructure investment opportunities, including sanitation, and the introduction of sustainable contracts under the new Procurement Law, heralds prospects for economic and social advancement. Collaborative engagement between public authorities, investors, and civil society is indispensable to optimize the benefits of this investment surge and foster a more prosperous and sustainable future.

Research conducted by UNOPS, in collaboration with the University of Oxford, underscores the pivotal role of infrastructure in sustainable development, emphasizing its significance in climate change mitigation and adaptation efforts.

Investors play a pivotal role in propelling sustainable solutions forward. Therefore, infrastructure investments must meticulously consider environmental and social impacts, striving for solutions that not only mitigate climate change but also enhance governance between public and private stakeholders.

Medina Osório Advogados, led by Fábio Medina Osório, former Minister Chief of the Federal Attorney General's Office (AGU), specializes in administrative law, regulation, and tenders. They firmly believe in the transformative potential of the New PAC as a catalyst for growth and an assurance of quality of life for Brazilians, emphasizing the imperative of legal certainty for private investors.