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:

You May Also Like

Thousands of Brazilian Farmers Might Be Expelled from Bolivia

"Illegal squatters, people living on land they do not have title deeds for, whether ...

The Alley’s Vampire

The morning moved on at that neoclassic apartment, with active exchange of wine bottles, ...

Brazil Post Office’s Month-Long Strike Ends After Court’s Intervention

After 28 days of strike, it will take between seven and ten days for ...

Canadian Firm Keeps Digging for Gold in Northern Brazil

Canada-based Lund Gold Ltd. announced yesterday that the remainder of its 2,000 meter Phase ...

Brazil Having Hard Time to Get Message Out on Cancer of the Uterus

The head of Brazil’s Special Secretariat for Women’s Policies, Minister Nilcéa Freire, says that ...

While Cuba Denies All, Brazil’s Opposition Asks for Lula’s Impeachment

Cuba categorically denied Sunday, October 30, having contributed US$ 3 million to Brazilian President ...

American Pilots Deny Any Wrongdoing on Boeing Crash that Killed 154 in Brazil

Over four years ago, in September 2006, a freak accident occurred over the Amazon ...

Brazil Can’t Wait, Mr. Lula

President Lula has gone back to being a timid tortoise. Style and not substance ...

Brazil on a Push to Modernize Ports

The Brazilian government plans to spend US$ 17 million (50 million reais) to eliminate ...

Twice Undesirable

Two Brazilians adopted as children by American couples are being expelled from the US. ...