Brazilian president Dilma Rousseff unveiled yesterday an ambitious, long-term investment scheme for the country. The plan contemplates infrastructure investments for R$133bn (US$66.5bn), to be made within the next 25 years, to expand the road and railway networks.

The aim of the plan is threefold: to boost a stagnant economy, to adjust the country’s lagging infrastructure to its productive capacity, and to generate employment. Rousseff, a critic of the privatisations carried out by president Fernando Henrique Cardoso in the 1990′s, avoided the use of the term ‘privatisation’. However, the construction and operation of roads and railways will be granted to private investors.

Yesterday’s announcement is the first of three. On this first stage, investment will go towards building 75,000 km of roads, at a cost of US$21bn, and 10,000 km of railways, for US$45bn. Most of the money (US$39.7bn) will be invested within the first five years.

It is expected that the next two announcements will come within the next few weeks, and will tackle private investment on ports, airports, and electricity.

Analysts forecast that Brazil’s GDP will grow only 1.81% this year, down from 2.7% in 2011 and 7.5% in 2010. During the announcement, Rousseff said “We want Brazil to grow between 4.5 and 5% yearly. And for that, we hope to build an adequate environment for investment, not only now, but also in the medium term.”

The works will also create an estimated 150,000 direct jobs.

The government expects the tenders to be closed and the contracts awarded by June 2013.