Brazil: China wants to invest in more infrastructure projects in Brazil

14 July 2008

Sao Paulo, Brazil, 14 July – The China Development Bank has shown interest in taking part in investment projects in the area of energy and logistics of the Brazilian Growth Acceleration programme (PAC) and has granted credit lines to Brazil for these purposes, according to the Folha website.

The PAC, which was launched in 2007 by the Brazilian Federal Government, includes a number of economic policies that aim to boost Brazil’s economic growth and outlines total investment of US$314 billion by 2010, giving priority to infrastructures, particularly ports and motorways.

Investment opportunities in Brazil where presented to the Chinese authorities and businesspeople in Beijing Friday, by the deputy head of the civil house, Miriam Belchior, and by the secretary for foreign trade, Welber Barral, during a mission of the Brazilian Ministry of Development, Industry and Commerce to China.

The visit by the Brazilian mission to Beijing, which followed stops in Macau and Hong Kong was part of the “China Agenda – Positive Action for Chinese-Brazilian Economic and Trade Relations” for which Brazil plans to increase exports to China three-fold to US$30 billion per year by 2010, via the sale of added-value products.

Barral said that the China Development Bank would fund several projects in the energy and logistics sectors and made all available credit lines open to Brazil.

The logistics and energy projects presented to the bank include taking part in public tenders for concessions of work on roads, railways, dredging at 13 ports, power plants and transmission grids.

At the meeting the Brazilian mission announced that the government planned to spend US$6.4 billion on 7,297 kilometres of motorways, US$18.4 billion on railways and US$17.3 billion on 29 hydroelectric power plants.

Amongst the work due to be tendered are the motorway linking Brasília to Rio de Janeiro and Belo Horizonte and the high speed train linking Rio de Janeiro to Campinas.

The China Development Bank is providing funding of US$750 million for the Gasene pipeline stretching over 946 kilometres, linking the southeast and northeast of Brazil via the cities of Cacimbas, in the state of Espírito Santo, and Catu, in the state of Bahia.

The project, which is expected to cost US$2.6 billion is being built by Chinese oil company, Sinopec. (macauhub)