• Categories
  • Archives

Brazil’s Lula Goes to Davos in Search of Investors

The Brazilian government estimates that at least US$ 3.3 billion may be invested by the private sector, domestic and international, in the 23 infrastructure projects forecasted in the Multi-Year Plan (PPA) and that are considered feasible for Public-Private Partnerships (PPP’s).

The total cost of these enterprises – which include construction, duplication, recovery and expansion of highways, railways, ports and irrigation systems -, is evaluated at around US$ 4.8 billion.


“The government does not have a precise estimate (about foreign investment), but believes that of the US$ 4.8 billion forecasted in the PPA up to 2007, at least 70% may be invested by the private sector,” stated the deputy head of Analysis and Government Policies at the Chief of Staff’s Office, Luiz Alberto dos Santos.


According to him, although the maximum assets of the PPP Guarantee Fund (FGP) are US$ 2.2 billion, nothing impedes private investment of reaching figures greater than this value.


The FGP is going to work as a kind of Government guarantor in the PPP projects, paying the private partner the amount forecasted in case the state goes default.


“If we consider the total estimated (of 70% of the US$ 4.8 billion), we would have US$ 3.3 billion in the next three years, up to 2007. Part of these funds may come from the foreign market and the federal government intends to attract this money by advertising the new legislation on the foreign market,” added Santos.


In this sense, one of the main objectives of the meeting Brazilian president Luiz Inácio Lula da Silva is going to have with foreign investors – to take place in parallel to the World Economic Forum in Davos, Switzerland, at the end of the month -, will be to present the Public-Private Partnership law that has recently been enacted.


The law was approved by the Brazilian Congress on December 20 and was passed by the Brazilian President on the 30th of the same month.


Lula met with foreign investors on other opportunities, in New York and Geneva, in 2004, but at those occasions the PPP’s were just a promise. Now, for the first time, he may address them as a reality.


The PPP’s are seen by the government as essential for support of country growth and as an opportunity to significantly increase investments in infrastructure, especially in the transport sector.


Of the 23 projects forecasted in the PPA, 19 are turned to highways, railways and ports.


ANBA ”“ Brazil-Arab News Agency

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Romero Lubambo: A Brazilian Musical Talent Seasoned with Math and Physics

If you have never heard about this prolific jazz arranger and guitarist, rest assured ...

Tom Jobim and Vinicius, the Brazilian Odd Couple Who Started It All – Part Three

Enter the American director, writer, producer, actor and jack-of-all-media-trades, the inimitable Orson Welles, once ...

Sanitation policies will receive support from PAHO

Measures to provide all Brazilian homes with access to public water and sewage systems ...

It Happened in Brazil: A Good Deed Is a Reward in Itself

March 9, 1999 is a day which I will remember forever. That day I ...

Brazil’s Foreign Trade Surplus Grows 30% in Semester to US$ 22.712 Billion

Brazilian exports yielded US$ 2.001 billion on the fourth week of July and imports, ...

Soy, Meat and Juices Give Brazil 25% Export Boost

Brazilian agribusiness exports yielded US$ 26.7 billion in the first half of this year, ...

Brazil Closer to Legalizing Abortion Up to 22nd Week of Pregnancy

A commission created in April to debate changes in the country’s abortion legislation decided ...

Abandoned for 10 Years, Brazil’s Highways Need US$ 3.3 Bi for Repairs

Brazil’s highways have been suffering from lack of resources for at least ten years. ...

Brazil’s Itaíº Swallows BankBoston in Chile and Uruguay

The leading Brazilian bank Itaú announced yesterday it had reached a deal with Bank of ...

Built to Break

Brasileiros in daily life complain continuously about shoddy Brazilian-workmanship, and the poor quality of ...