Brazil makes infrastructure cooperation agreement with China official

5 January 2007

Sao Paulo, Brazil, 4 Jan – The cooperation agreement between China and Brazil in the areas of electrical power, hydro resources, oil and natural gas, signed last year in Beijing, was put into effect Thursday, the Brazilian government said.

Signed on June 5 and approved by the Brazilian Congress on September 12, the agreement was made official Thursday by the publication of a decree in the official Brazilian government publication (Diário Oficial da União).

“Boost bilateral cooperation in the area of infrastructures,“ and “encourage the authorities and competent bodies of the two countries in order to make implementation of the cooperation easier,” are the first two articles of the decree.

As well as those items, the text also makes the agreement official for “supporting companies from the two countries to build of infrastructures,” and “promote, on a permanent basis, including by direct contracting, cooperation between Brazilian and Chinese companies for related projects.”

Amongst the projects mentioned by the decree are partnerships between Oil companies Petrobras and Sinopec and electricity companies Eletrobras and the Citic Group.

In the partnership between the oil companies, a specific project is the construction of a natural gas pipeline, known as the Gasene Project.

The modernization of thermal power plants in the north of Brazil and the construction of a thermoelectric coal-fired plant in the south of Brazil are some projects carried out by the partnership between Eletrobras and the Citic group.

China’s Cooperation Ministry and Brazil’s Ministry of Mines and Energy are responsible for the implementation of the agreement, which is valid for ten years, and automatically renewable for a further ten. (macauhub)