China will finance Brazil

China will finance Brazil

President of Brazil Michel Temer, said on August 29th he expects China to be a major player in Brazil’s plans to modernize its ports, airports and other infrastructure projects that will be offered to investors in private concessions. He also hopes China will finance energy projects.

Brazil will seek China’s expertise and financing to complete its third nuclear power plant when President Michel Temer makes a state visit to Beijing on September 1st.

“China could be one of the big investors in our plans for concessions,” he said in a video message released after he set off for Beijing, where he will meet Chinese President Xi Jinping ahead of the BRICS summit in Xiamen.

The Brazilian nuclear energy company Eletronuclear will sign a cooperation agreement with China National Nuclear Corporation (CNNC), signalling their intent to establish a partnership to finish the Angra 3 plant, the officials said.

Construction of the 1,405-megawatt reactor on the south coast of Rio de Janeiro has dragged on for three decades and its completion is now scheduled for 2023, but Brazil does not have the estimated 16 billion reals ( USD 5 billion) needed to finish the job.

Russia is also interested in completing Angra 3 and Eletronuclear, a subsidiary of state-run electric utility Eletrobras, has held talks with Rosatom.

The Chinese corporation is expected to have the advantage in terms of abundant financial resources. The head of Eletronuclear, Bruno Barretto, signed an initial memorandum with CNNC on the Angra 3 completion in Beijing in December 2016 when he visited Chinese bank.

Temer’s government has announced plans to privatize Eletrobras, Latin America’s largest utility. But Eletronuclear will be split off and remain in state hands under Brazil’s Constitution, which establishes that nuclear facilities must be government controlled.

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Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.