Brazil’s Development Bank Doubles Energy Financing to US$ 4.3 Billion

Brazilian energy Financing by the Brazilian Development Bank (BNDES) for the energy sector totaled 8.3 billion Brazilian reais (US$ 4.3 billion) over the last 12 months ending in August this year, expansion of 106% over the previous period.

In the accumulated result for the first eight months of 2008, financing granted by the bank for energy projects totaled 4.5 billion reais (US$ 2.4 billion). In this case, the increase was 73%.

The head of the Electric Energy Department at the BNDES, Nelson Siffert, said that disbursements accumulated this year should reach, by December, a total of 9 billion reais (US$ 4.7 billion) for investment in sector projects.

"These disbursements are seasonal and usually rise in the last quarter of the year. We still believe that investment in the area should total 9 billion Brazilian reais (US$ 4.7 billion)," stated Siffert. Last year, the bank's disbursements for the sector totaled 8.13 billion reais (US$ 4.2 billion).

The BNDES has a project portfolio of 15,000 megawatts (MW) of energy, with 9.6 billion (US$ 5 billion) to be financed and investment of 11.5 billion reais (US$ 6 billion). From 2003 to June this year, the BNDES supported 210 electric energy projects, totaling financing of 32 billion (US$ 16.7 billion).

In the area of generation, 142 projects were approved for a total of 15,214 MW, of which 37 are hydroelectric power plants, with 11,130 MW. Credit for the generation of energy totaled 21.3 billion reais (US$ 11.1 billion), which resulted in investment of 36.2 billion (US$ 18.9 billion).

Also in the period from 2003 to June 2008, the BNDES approved 34 projects in the area of energy transmission, with 10,000 MW of basic network transmission lines. The financing reaches 6 billion reais (US$ 3.1 billion), with investment of 10 billion reais (US$ 5.2 billion).

In the sector of distribution, 31 projects count on the investment of 5 billion reais (US$ 2.6 billion). The investment reaches 8.5 billion reais (US$ 4.4 billion). "We have been trying to foster, in distribution, the efficiency of electric energy, in the sense of seeking greater economy and having more efficient processes in distribution and rationalization of energy," stated Siffert.

Siffert believes that the search for BNDES financing, in the area of electric energy, should present more significant growth next year. "We are going to enter a trajectory of growing disbursements in energy, also in 2009, 2010 and 2011, as the volume of projects being developed also guarantees sustainability of disbursements for coming years. They are projects with long maturity."

ABr

Tags:

Ads

You May Also Like

Brazil Starts World’s Second Biggest Wind Energy Park

The presidents of the Brazilian Development Bank (BNDES), Guido Mantega, and of the wind ...

Brazil’s Finance Minister Promises Long Cycle of Growth

In testimony before the Brazilian Senate Economic Affairs Commission (CAE), Brazil’s Minister of Finance, ...

Cut PET brick inside a woodee mould

Brazil Builds Houses Using Coke Bottles as Bricks

Concerned about the volume of soft drink bottles thrown in the waterways of Manaus, ...

Brazil Has a US$ 19 Billion Surplus with US$ 52 Billion in Exports

According to Brazil’s Ministry of Development, Industry and Foreign Trade, the week of June ...

Brazil and G20 Can’t Narrow Gap With US and EU on Trade Barriers

Trade talks ahead of the crucial World Trade Organization, WTO, Hong Kong December meeting ...

Brazil: There Was Never a Black Like Zumbi

November 20 has been National Black Awareness Day (Dia Nacional da Consciência Negra) in ...

Saudis Have Oil for 140 Years, says Aramco Chief in Brazil

There is no reason to fear a shortage in oil supply. This is what ...

Due to Prejudice Majority of Jobless in Brazil Are Women

Women form the majority of the unemployed in Brazil’s six metropolitan areas – Rio ...

US Treasury Secretary Scolds Brazil for Corruption and Bureaucracy

The yuan needs to "adapt" to the vigor and strength of the Chinese economy, ...

Brazilian airline TAM

The Lan-TAM Alliance Will Make Travel Easier in Brazil and Chile

Brazil's TAM Linhas Aéreas and Lan Chile, both airlines with a clear dominating position ...