Brazil and China have agreed to form a $20bn investment fund to finance infrastructure projects in the South American country.
Chinese capital will account for up to $15bn of the fund, called the Brazil-China Cooperation Fund for Increasing Productive Capacity, while up to $5bn will come from Brazil, Brazil’s Planning Ministry said in a statement.
“There may be resources from FI-FGTS, BNDES and from the private sector,” Planning Minister Dyogo Oliveira said. FI-FGTS is an infrastructure fund managed by the federal savings bank Caixa Economica Federal.
The fund can invest in equity or debt in various sectors, including logistics, energy, mining, agriculture and manufacturing, among others, the ministry said.
China Three Gorges Corp agreed earlier this month to buy Duke Energy’s Brazilian business for $1.2bn. Three Gorges and State Grid Corporation of China are also in the running to buy the Brazilian hydroelectric energy concessionaire Santo Antonio Energia from Cemig and Odebrecht for as much as $3bn. State Grid last month acquired a controlling stake in local electric company CPFL.