References

Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Infrastructure Industry

Insufficient infrastructure has been major obstacle for economic growth in Brazil. In addition, Brazil is the host for 2014 Football World Cup and 2016 Olympic games. Hence, there is a significant challenge for the government to improve infrastructure to support the inflow of visitors that will be attracted by these events.

This requires extensive investment in the tourism sector, sporting facilities and urban areas of Brazil. Due to these reasons many of the world's leading investment funds and financial institutions are preparing themselves to benefit from financing opportunities available in infrastructure development. Brazil is one of the largest recipients of FDI in infrastructure, and it still has a lot potential for foreign investment in this sector.

 

Foreign investment in Infrastructure

 

Urban development of Slums:

 

This project comes under urban development, and the participants are the Federal Government/Rio de Janeiro State and municipal governments. The regions where this project will be executed are Rio de Janeiro, Niterol, Sao Goncalo and the Lowlands.

The development project includes removal of shanty towns from areas of risks and river banks, and also to improve the supply of water in Baixada Fluminense, Sao Goncalo, and Niterol and Itaboral regions. It also includes installation of sewage systems and clean-up of Guanabara and Sepetiba Bays. The construction of housing in Rio de Janeiro and the Baixada region is also enlisted on the list of planned work. The develop project of urban regions focuses on construction of slopes to avoid flooding in the Lowlands.  The total estimate cost of this project is US $1.8 billion and the opportunity available for private investors is through procurement.

 

Foreign investment in Electricity generation:

 

The project is located in the municipality for Angra dos Reis at the Almirante Alvaro Laberto Nuclear Centre (CNAA). This electricity generation unit already houses two nuclear stations: Angra 1 (600 MW) and Angra 2 (1350 MW)

The Angra 3 project will have a gross capacity of 1,350 MW, which will have the capacity of generating 10.9 million MWH per year. The energy produced by Angra 3 will be equivalent to one-third of the total energy consumed by Rio de Janeiro State. The power station is expected to have a life of 40 years and it will help meet over 80% of Rio de Janeiro’s electricity needs in conjunction with the two existing power stations.

The total investment estimate for this project is US $2.274 billion.  The project is scheduled to be completed by the year 2014. Foreign investors can participate in this energy project in procurement to supply engineering work, products and services.

The construction of Angra 3 is considered the most important project for the government because it will use one of the important Brazilian sources of energy, uranium.

The Brazilian government has announced some ambitious plans for development of infrastructure. The spending on infrastructure will rise from 504bn reals ($289bn) to 646bn reals ($370.7bn) under the state, PAC and private spending. This move has been proposed to cover the economic damage caused due to financial crisis. The Brazilian Government believes infrastructure remains the key for development of other sectors and stimulates foreign direct investment in country. The World cup alone represents an investment potential of 10-30 billion pounds. Foreign investors continue to make returns by investing in infrastructure projects in Brazil.