Chinese and Brazilian technicians and engineers are already studying possible investment projects in Brazil, specifically the railway that will link the Pacific and Atlantic Oceans and in industry, according to Brazilian newspaper Jornal do Brasil.
Funding for these projects will be guaranteed by an investment fund approved by the governments of China and Brazil in the middle of last year. The Chinese side will provide an initial contribution of US$15 billion and the Brazilian side a contribution of US$5 billion.
The company that will manage the investment fund has already been set up, is headquartered in Beijing and is called “China Latin America Industrial Investment Cooperation Fund” (Claifund).
Jornal do Brasil also wrote that the Chinese funds should would be redirected from international reserves, while the Brazilian side will gradually be provided state banks, as management of international reserves in Brazil is more limited and restrictive. (macauhub/BR/CN)