Agreements between Brazil and China could represent US$9.9 billion in funding

4 September 2017

The 14 agreements signed during the official visit of Brazilian President Michel Temer to China to attend the BRICS summit meeting in Xiamen, Fujian province, could represent US$9.9 billion in investments and credit lines, according to Brazilian daily Estado de São Paulo.

The largest amount will be the result of the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) granting the environmental license for construction of the electric power transmission line between the Belo Monte dam in the State of Pará and the southeastern region of Brazil.

Brazil’s ambassador to China, Marcos Caramuru, said in Beijing that the China State Grid group will invest US$3.5 billion to build the 2518-kilometre transmission line, which will be the longest in Brazil.

The second largest amount relates to the China Development Bank credit line to Brazil’s National Bank for Economic and Social Development (BNDES).

The Brazilian ambassador also said that there are agreements for the project of the Porto do Sul port, in Ilhéus and the Ferrovia de Integração Oeste-Leste (FIOL) railway, which will link that city to Caetité, both in the State of Bahia, over a distance of 500 km, with both projects valued at US$2.4 billion.

According to the ambassador, the agreement provides for a consortium of Chinese companies, Kazakhstan and the government of the State of Bahia to compete for the projects, which are expected to be tendered in 2018.

The fourth largest amount concerns US$700 million in financing to be raised by the China Communication and Construction Company (CCCC) for construction of a private terminal at the port of São Luís (Maranhão State).

In the overall announced figure, the Brazilian ambassador included a credit line worth US$300 million that the Export-Import Bank of China may grant to Banco do Brasil.

The National Bank for Economic and Social Development and the China Export & Credit Insurance Corporation (Sinosure) have signed a document granting guarantees to Chinese companies doing business in Brazil. The Brazilian government had announced in advance the hiring of the China National Nuclear Corporation to evaluate the procedures necessary for conclusion of the Angra 3 nuclear power plant.

The president of Brazil also met with Xi Jinping, with the two presidents agreeing to extend bilateral strategic cooperation.  (macauhub)