Press Release No. 04/159

The following statement was issued today in Brasilia:

A mission from the International Monetary Fund (IMF), with participation of the World Bank and Inter-American Development Bank (IDB) visited Brazil in the last several days to review the trends in infrastructure investment in recent years, and possible options for addressing the most pressing needs in that area. The mission met today with Minister Palocci to discuss its preliminary findings. During the meeting, various options were discussed for stepping up selected public investments in infrastructure with strong potential for boosting Brazil's growth over the medium term, within the overall framework of a macroeconomically sound and sustainable fiscal policy. Discussions also focused on the need to further strengthen existing systems of appraisal, selection, implementation and monitoring of public investments. Options for promoting an increased involvement of the private sector in the construction and operation of infrastructure, including through efficient and fiscally sound private-public partnerships (PPPs), were also discussed. These various issues will be explored further in the weeks ahead through additional analysis of the information received, and continued dialogue with the Brazilian authorities. It is expected that this dialogue will lead to a shared view of the best way forward before the end of this year.

This mission is part of a series of studies being conducted by the staff of the IMF, World Bank and IDB in various member countries to test the approach proposed in the IMF papers on fiscal policy and public investment, and on PPPs, which are available on the Fund's website.¹

---

¹ The Public Information Notice 04/45 summarizes the views of the Executive Board, as expressed during the April 2, 2004 informal seminar, based on the reports "Public Investment and Fiscal Policy" and Public-Private Partnerships."