Brazil’s Banco Modal (www.modal.com.br) and the China Communications Construction Company Group (CCCC) are examining the performance of Chinese investment in the railways in Brazil,one of the bank’s partners told Brazilian daily newspaper Folha de São Paulo.
Eduardo Central told the newspaper that Banco Modal, which already has a partnership with one Chinese group, is now interested in the EF-170 railway, known in the country as “Ferrogrão”, which is 1,142 kilometres long and runs North-South, between Tocantins and São Paulo, and is also part of the federal concession programme.
The bank set up the MDC partnership, which is considered strategic, with Australia’s Macquarie Capital and the CCCC group to make initial investments of 500 million reais in infrastructure and logistics networks in Latin America.
The partner who spoke to the newspaper said several investments in the energy sector were being considered.
Banco Modal is the exclusive financial adviser of the Chinese group in Brazil, where it has bought an 80% stake of Concremat – Soluções Integradas de Engenharia (Integrated Engineering Solutions), for which it paid 350 million reais and will buy another in the Private Use Terminal (TUP) of Sao Luis in Maranhao, the WPR multi-cargo project, of the WTorre group.
The bank established another partnership related to China with US fund TPG, which last December closed its office in Brazil and launched an investment fund with an initial endowment of US$4 billion for investment in emerging markets. (macauhub)