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Lula authorizes ministry to retake R$40 billion Army land in Brasília

The area will be used for a rail transport project and real estate development.

President Luiz Inácio Lula da Silva, in Brasília - 09/07/2025 (Photo: REUTERS/Adriano Machado)

247 - President Luiz Inácio Lula da Silva (PT) authorized the Ministry of Transport to reverse the transfer of a plot of land valued at approximately R$ 40 billion, currently under the possession of the Army, and to resume management of the area. The space in question, where the old Brasília rail and road terminal used to operate, covers 4,2 million square meters — the equivalent of almost three times the size of Ibirapuera Park in São Paulo.

According to what the newspaper revealed FSPThe decision was discussed at a meeting between Lula and ministers Renan Filho (Transport) and Esther Dweck (Management and Innovation). At the meeting, the president gave his approval for the government to annul the administrative acts that transferred the land to the military and move forward with the project to grant a concession for the area.

A strategic space for transportation projects.

Located just nine kilometers from the National Congress, the land is considered one of the most valuable areas in the Federal District. The government intends to link real estate development in the area to the expansion of the rail network, starting with the implementation of the Light Rail Vehicle (LRV), which will connect Brasília to Luziânia (GO) on a 62 km route.

In addition to the project in the Federal District, the Union plans to make viable five new passenger transport routes in different states: Londrina–Maringá (PR), Rio Grande–Pelotas (RS), Fortaleza–Sobral (CE), São Luís–Itapecuru Mirim (MA) and Salvador–Camaçari–Feira de Santana (BA). The bidding processes are scheduled for 2026.

Dispute between the federal government, the Army, and the Federal District government.

The origin of the impasse dates back to 2021, when the Secretariat of Federal Assets ceded the property to the Army during the Jair Bolsonaro (PL) administration. The Ministry of Transport, however, maintains that the cession disregarded the area's intended use for railways, which was previously linked to the National Department of Transport Infrastructure (DNIT). Since then, the ministry has contacted the Attorney General's Office (AGU) and the Comptroller General's Office (CGU) to reverse the transfer, in a process that is already nearing completion.

The Army, in response to SheetThe Armed Forces dispute this version. They claim that they received the area in 2006 and that in 2021 they only began negotiations with the Government of the Federal District (GDF) for the construction of a military hospital and the new Sergeants' School, planned for Recife. According to the military, the agreement signed with the Union "ensured the Armed Forces the patrimonial management of the property, including the possibility of alienation, reverting resources to national defense projects."

Political stalemate and internal tensions

The Federal District Government (GDF) stated that there is still no decision regarding the future use of the space and that any project depends on an Occupation Plan. The Ministry of Management, in turn, reported that it maintains a technical dialogue with the agencies involved, but without a final decision.

The measure has caused discomfort among Army generals. Defense Minister José Múcio avoids publicly commenting on the matter, but acknowledges the sensitivity of the issue. According to aides, his stance is to try to mediate an understanding should he be called upon to intervene.

According to government officials, Lula's decision is already solidified, although not yet formalized. Technicians have already carried out land measurements, and Minister Esther Dweck argues that part of the resources from the real estate development should be channeled into a federal real estate fund, while the Ministry of Transport wants to direct the money exclusively to railway projects.

Negotiations amidst larger political maneuvering.

Discussions about resuming the area are taking place at a time when the government is working in Congress on a package that provides an additional R$ 5 billion annually for the Armed Forces, outside the fiscal ceiling. The project, conceived by the Ministry of Defense and debated with Lula, Finance Minister Fernando Haddad, and the Chief of Staff, Rui Costa, is expected to intensify the debate on the balance between military demands and the infrastructure agenda.

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