The Brazilian government will build one million houses by 2010 to reactivate the domestic construction sector and create more jobs, President Luiz Inacio Lula da Silva said on Wednesday.

The plan doubles the previous house-building number Lula announced last week on the inauguration of a Growth Acceleration Program (PAC) project.

The housing project is part of a package being developed to stimulate the construction sector, Lula said.

Lula said he asked for a review of the draft proposal because he wants a package that generates more jobs and builds cheaper houses for poor people.

The package will also include measures that benefit the middle class, such as increasing maximum housing loans made by government-owned banks from 350,000 reais (US$154,000) to 500,000 reais (US$220,000).