Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon

This report by the Climate Policy Initiative (CPI/PUC-Rio) analyzes the financing landscape for highway and railroad projects in Brazil's North Region and nationwide between 2012 and 2021. It identifies a heavy reliance on public funding, particularly from the federal government and BNDES, while noting a growing but still limited role for private capital via incentivized debentures. The report emphasizes that infrastructure in the Amazon is a primary driver of deforestation and calls for strengthened governance, increased transparency, and rigorous socio-environmental criteria to ensure that future investments do not cause further ecological damage.

• Between 2012 and 2021, the North Region of Brazil received R$ 30.6 billion (US$ 11.1 billion), which represents 17% of the total R$ 179.7 billion (US$ 62.9 billion) in tracked financing for highway and railroad projects across Brazil.
• In the North Region, the rail sector was the primary recipient of funding, receiving 55% (R$ 16.7 billion / US$ 6.8 billion) of public and private resources. This was heavily driven by the Carajás Railroad (EFC), which alone accounted for R$ 14.5 billion (US$ 6.1 billion), or 48% of the total mapped for the region.
• The federal government served as the main funding source for the North Region between 2012 and 2021, providing R$ 20.8 billion (US$ 8.3 billion), which is nearly two-thirds of the tracked finance. This included R$ 9 billion (US$ 2.9 billion) from the public budget and R$ 8 billion (US$ 5.4 billion) from subsidized loans.
• Public budget funding for highways and railroads remained constant in the North Region from 2012 to 2021, whereas nationwide funding from the public budget for these sectors fell by 53%.
• Within the North Region, public budget funds were overwhelmingly directed to the road sector (99% of R$ 9 billion). Of these funds, 79% (R$ 7.1 billion / US$ 2.2 billion) were used for maintenance and operation of existing highways, while 20% (R$ 1.8 billion / US$ 701 million) were used for new construction.
• Private financing accounted for 22% (R$ 6.7 billion / US$ 1.9 billion) of the flows to the North Region, primarily through incentivized debentures. Vale S.A. was the largest private investor, contributing R$ 3.3 billion (US$ 1.2 billion) to the Carajás Railroad.
• Multilateral Development Banks (MDBs) provided R$ 3 billion (US$ 911 million) in subsidized loans for the North Region. The New Development Bank (NDB) was the most active MDB in the region, investing R$ 2.2 billion (US$ 498 million) across two projects: a road rehabilitation program in Pará and the Carajás Railroad.
• Infrastructure projects in the Amazon are identified as a leading cause of deforestation. In Pará, four planned federal investments (Ferrogrão, BR-155/158, BR-163/230/MT/PA, and BR-230/PA) have the potential to deforest 6,989 km² over 30 years.
• The report highlights significant governance failures, including a lack of transparency, poor resource allocation, and stalled works. A Brazilian Court of Accounts (TCU) audit found that 25% of works managed by the National Department of Transport Infrastructure (DNIT) were paralyzed.
• The use of incentivized debentures for infrastructure grew significantly nationwide, from R$ 1.1 billion (US$ 587 million) in 2012 to R$ 9.6 billion (US$ 1.8 billion) in 2021, coinciding with a decrease in BNDES subsidized loans.

APA

Climate Policy Initiative (2022). Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon. https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/

Chicago

Climate Policy Initiative. Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon. 2022. https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon |date=30 November 2022 |url=https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022finance, author = {{Climate Policy Initiative}}, title = {{Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon}}, institution = {Climate Policy Initiative}, year = {2022}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }