Gilmar Mendes, a justice of the Supremo Tribunal Federal (STF), said legal certainty is essential to attract private investment for Brazilian infrastructure.
This push for predictability comes as Brazil struggles to fund critical development projects. Without a stable regulatory environment, private capital remains hesitant to commit to the long-term contracts required for large-scale public works.
Speaking during the eighth [1] edition of the Brasília Summit, an event organized by LIDE, Mendes said that regulatory predictability serves as a fundamental pillar for the economy. He said that securing these legal frameworks is the only way to unlock stalled infrastructure works across the country.
According to reports from the summit, Brazil currently invests approximately 50% [2] of what is necessary for its infrastructure needs. This gap creates a reliance on private sector participation to bridge the funding deficit.
Mendes said that the lack of predictability increases costs and risks for investors. By ensuring that contracts are respected and regulations remain stable, the government can reduce the risk premium associated with Brazilian projects, thereby attracting more global and domestic capital.
The justice said that infrastructure development is not merely a matter of available funds but a matter of trust in the legal system. He said that the judiciary must play a role in ensuring that the rules of the game do not change after investments have already been made.
This discourse occurs as the Brazilian government seeks to expand its network of roads, railways, and energy grids to support economic growth. The eighth [1] Brasília Summit provided a forum for leaders to discuss how to align judicial interpretations with the needs of the private sector to ensure sustainable development.
“Legal certainty is essential to attract private investment for Brazilian infrastructure.”
The intervention by a high-ranking STF justice signals a strategic effort to align Brazil's judicial outlook with investor expectations. By highlighting a 50% funding gap in infrastructure, Mendes is framing legal stability not just as a judicial preference, but as an economic necessity for national development.
