Brazil and China due to meet in January to assess support from the Fund for the Expansion of Productive Capacity

28 December 2017

Officials from Brazil and China are scheduled to meet at the end of January 2018 to assess eight pre-selected projects to be supported by the Cooperation Fund for the Expansion of Productive Capacity created this year with US$20 billion.

Brazilian financial newspaper Valor Economico reported that the Ferrogrão projects, a railway line linking Sinop, in Mato Grosso to Miritituba in Pará and a steel plant in Maranhão, in partnership with CBSteel, are the most likely to receive financial support from the fund.

The newspaper also said that a decision on China Railway Capital and China Railway First Group becoming involved in line 6 of the São Paulo metro should be made in January. The two Chinese groups, associated to Japanese company Mitsui, intend to replace the previous consortium that started the work but never completed it.

The auction in 2018 for the construction of the West-East Integration Railway (Fiol) in Bahia and the construction of the South Port of Ilhéus to transport cargo carried by rail are also among the projects in which private companies from China have shown an interest.

In 2017 China State Grid purchased CPFL Energia, China Merchants Port acquired the Paranaguá Container Terminal in Paraná, the State Power Investment Corporation (Spic) took control of the São Simão hydroelectric plant and HNA took over control of the airport of Galeão, in Rio de Janeiro.

According to the Brazilian Ministry of Planning, China has direct investments in Brazil estimated at US$117 billion, but focused on three sectors: energy, mining and agribusiness. (macauhub)