State-owned lenders BNDES and Caixa Economica Federal will manage a $20bn infrastructure fund formed by Brazil and China to invest in infrastructure projects in the South American country.

The Brazil-China Cooperation Fund will receive $15bn from the Chinese Cooperation Fund for Investment in Latin America (Claifund) and $5bn from financial institutions in Brazil. The fund is open to other banks in Brazil, other than BNDES and Caixa, BNDES said in a statement.

For every $1 that the Brazilian banks provide in funding, Claifund will contribute $3, BNDES said. The national development bank also said the fund placed priority on financing logistics and energy projects but will also consider investments in industry, mining, agribusiness and digital services.

“The cooperation fund will not operate as an investment fund with set resources. It will be an agreement between Claifund and the Brazilian government that, in practice, will operate as a mechanism for screening projects,” BNDES said in a statement.

A six-member committee with representatives from Claifund and the Brazilian banks will review submissions for financing, BNDES said. Chinese companies or Chinese goods do not have to be part of a project to receive financing, the bank added.

“This way, investment projects in Brazil will be able to count on financing sources with more attractive conditions than currently offered in the Brazilian market through a commitment from Brazilian financiers for just 25% of the total resources necessary for the projects,” BNDES said.

Claifund bought a third of China Three Gorges’ assets in Brazil in January this year, after the Chinese power company acquired Duke Energy’s operations in the country for $947m. Claifund has also earmarked investments in the Porto Sul port project, the Ferrovia de Integracao Oeste-Leste (FIOL) railroad and the state-owned mining company Bahia Mineracao.