SAO PAULO — Brazil plans to speculate 52.8 billion reals (U.S. $10.6 billion) for research, development and equipment acquisition efforts for its military, including nearly doubling the scale of its Gripen fighter fleet and financing projects by local aircraft manufacturer Embraer for aerial refueling planes, the federal government announced earlier this month.
The measure, revealed Aug. 11, is a component of the federal government’s Growth Acceleration Program, or PAC, established by President Luiz Inácio Lula da Silva. PAC guided programs during his first two terms in office, which lasted from 2002 to 2010, and there are actually plans for the overarching initiative to spend 1.7 trillion reals, with defense a key area of focus.
“Equipping the Armed Forces with cutting-edge technologies, enhancing national defense capability, and border monitoring are a few of the guidelines of the Latest PAC,” in line with a government website.
The federal government intends to speculate 27.8 billion reals by 2026, and a further 25 billion reals after that period, and not using a specific deadline.
The PAC doesn’t require the legislature’s approval, because it is a federal investment program funded by government resources, state contributions and the private sector through concessions.
Nevertheless, there are some obstacles, equivalent to bureaucratic processes and legal uncertainties for public works. Regarding defense, which is able to rely almost exclusively on public funds, the federal government might face financial challenges, in line with Cristiano Noronha, the vp of Arko Advice, a consultancy firm in Brazil’s capital Brasília focused on intelligence and political evaluation.
“The manager [branch] has often made budget cuts through the years. The investments will rely upon the federal government’s fiscal capability, spending control and economic growth,” he told Defense News, adding that this system may very well be seen as an “expression of intent.”
For the Brazilian Air Force, the plan involves the production and acquisition of 34 F-39 Gripen fighters, which might almost double the country’s fleet. Brazil signed a $5.04 billion contract with Swedish manufacturer Saab in 2014 for the acquisition of 36 Gripen fighters, for delivery by 2027. In 2022, the signatories added 4 more fighters to the contract.
Of the 40 now on order, Brazil has received six, with 4 in operation. The contract stipulated that assembly for 15 F-39E Gripens would happen at Embraer’s factory in Gavião Peixoto within the state of São Paulo. The deal also included a technology sharing agreement between Brazilian engineers and Saab. The fighter production line was inaugurated in May 2023.
“The renewal of the fighter aviation [fleet] is considered one of the primary projects of the Brazilian Air Force covered in the brand new PAC, and is being realized through the acquisition of the Gripen fighter,” Defense Minister José Mucio Monteiro Filho told Defense News. “It’s the most recent combat aircraft in Latin America, enabling Brazil to significantly enhance its air defense capability consistent with the country’s continental dimensions.”
The minister also pointed to a different program under PAC: the acquisition of nine C-390 Millennium planes — initially generally known as KC-390 — produced by Embraer, together with the event of a refueling version of the model.
“Besides its military role, the KC-390 might be utilized in national and international humanitarian aid actions, equivalent to supporting public emergencies and firefighting,” he said.
The federal government website also mentioned plans to convert two Airbus A330 aircraft into aeromedical and aerial refueling planes.
Pedro Pligher is a Latin America correspondent for Defense News. He has reported on politics, economics and the Brazilian small arms industry.