Brazil Pursues US$200 Billion in Investments for Infrastructure Projects

SAO PAULO, Brazil, April 2 /PR Newswire/ -- This release was distributed

today by the Associacao Brasileira da Infra-estrutura e Industrias de Base.



Apr 02, 2001, 01:00 ET from Associacao Brasileira da Infra-estrutura e Industrias de Base

    Brazil, the Latin American giant and one of the world's ten largest
 economies, has an insatiable appetite for investments to sustain its
 development. Despite having attracted more than US$100 billion in
 international funding in the past four years, the land of Pele is showing the
 world that it is much more than soccer (with all due respect to the renowned
 king of the sport) and Carnival, implementing a ground-breaking program
 designed to attract additional (and essential) resources to maintain and, most
 likely, increase its annual growth rate of 4.5%.
     Launched a few months ago, Infra2020 is a private-sector initiative
 represented in this case by the Associacao Brasileira da Infra-estrutura e
 Industrias de Base, Abdib (Brazilian Association of Infrastructure and Basic
 Industries), an entity that includes major Brazilian and multinational
 corporations based in the country, responsible for a domestic annual revenue
 of more than US$61 billion. Having performed an initial survey to gauge needs
 in key areas, such as electric energy, basic sanitation, transportation,
 petroleum, gas and tourism, Infra2020 has already identified hundreds of
 projects of all sizes, requiring more than US$200 billion over the next five
 years. This survey is being updated constantly, and each year Infra 2020
 revises this figure, increasing the available opportunities for domestic and
 foreign investors over the next five years. (See www.infra2020.com.br)
     Jose Augusto Marques, president of Abdib, says that until 10 years ago
 investment initiatives in Brazil's infrastructure were almost exclusively the
 Government's responsibility.  Now with privatization in full swing, the
 responsibility of developing the sector is almost entirely in the hands of
 free enterprise. "Support from the federal government and regulatory agencies,
 as well as from other trade organizations, is of utmost importance, however;
 the key to success is currently in the hands of important entrepreneurs in
 Brazil and elsewhere, who believe in the tremendous potential of good business
 that this market of 170 million people has to offer. Brazil is rapidly on the
 road to generating one trillion dollars in GNP," said Marques.
 
     Energy
     One of Brazil's infrastructure sectors that largely lacks investments is
 electric energy. This is manifested in the growing concerns voiced daily in
 the media by various members of society with regards to the possibility of the
 government initiating strict rationing in upcoming months. The country that
 built Itaipu -- one of the world's largest hydroelectric plants -- on the
 border with Paraguay, stopped investing in new projects several years ago when
 public companies from the sector experienced a decline in government funding.
 Private, domestic and foreign investors have come together with an interest in
 filling this void, but have met with prohibitive regulatory barriers. The
 outcome: industry and trade, and even residential consumers, may face an
 extended period of scarcity and high prices, with other inevitable
 consequences.
     It was with this scenario in mind that Abdib and its partner, Alcantara
 Machado Feiras e Negocios, have placed at the top of Infra2020's agenda a
 large exposition on electric energy investment projects called Infra GTD 2001
 (Generation, Transmission and Distribution), scheduled to be unveiled in Sao
 Paulo between April 24 and 26, 2001.  Its objective is to bring project
 developers, project owners and potential investors face-to-face to negotiate
 in well-equipped data rooms.  In reality, there are more than 700 GDT projects
 in Brazil that could absorb nearly US$90 billion.
     To debate the country's energy problems from the investment perspective
 and, most importantly, the obstacles impeding their timely resolution, an
 international forum will be simultaneously held, with the participation of
 experts from several countries, businessmen, banking agents, market analysts,
 government representatives and, primarily, regulatory agencies.  The main
 topic of the forum will be "Viabilizacao de Novos Investimentos em GTD" (The
 Viability of New Investments in GTD).
     In the coming months, the Infra 2020 Program has similar initiatives
 scheduled for the following sectors: Infra-Tourism, Basic Sanitation, Infra-
 Petroleum/Gas, Infra-Intermodal for the transportation and logistics sector
 and Alcoolchemical, for alcohol and biomass sectors. During the second half of
 the year, an event called Infra2020 will be held in a European city to be
 announced.
     "By offering such great opportunities for good business in a growing
 economy with low inflation, as well as a consolidated democratic structure, we
 are certain Brazil will be a strong option for investors," concluded Abdib's
 president.
 
 

SOURCE Associacao Brasileira da Infra-estrutura e Industrias de Base
    Brazil, the Latin American giant and one of the world's ten largest
 economies, has an insatiable appetite for investments to sustain its
 development. Despite having attracted more than US$100 billion in
 international funding in the past four years, the land of Pele is showing the
 world that it is much more than soccer (with all due respect to the renowned
 king of the sport) and Carnival, implementing a ground-breaking program
 designed to attract additional (and essential) resources to maintain and, most
 likely, increase its annual growth rate of 4.5%.
     Launched a few months ago, Infra2020 is a private-sector initiative
 represented in this case by the Associacao Brasileira da Infra-estrutura e
 Industrias de Base, Abdib (Brazilian Association of Infrastructure and Basic
 Industries), an entity that includes major Brazilian and multinational
 corporations based in the country, responsible for a domestic annual revenue
 of more than US$61 billion. Having performed an initial survey to gauge needs
 in key areas, such as electric energy, basic sanitation, transportation,
 petroleum, gas and tourism, Infra2020 has already identified hundreds of
 projects of all sizes, requiring more than US$200 billion over the next five
 years. This survey is being updated constantly, and each year Infra 2020
 revises this figure, increasing the available opportunities for domestic and
 foreign investors over the next five years. (See www.infra2020.com.br)
     Jose Augusto Marques, president of Abdib, says that until 10 years ago
 investment initiatives in Brazil's infrastructure were almost exclusively the
 Government's responsibility.  Now with privatization in full swing, the
 responsibility of developing the sector is almost entirely in the hands of
 free enterprise. "Support from the federal government and regulatory agencies,
 as well as from other trade organizations, is of utmost importance, however;
 the key to success is currently in the hands of important entrepreneurs in
 Brazil and elsewhere, who believe in the tremendous potential of good business
 that this market of 170 million people has to offer. Brazil is rapidly on the
 road to generating one trillion dollars in GNP," said Marques.
 
     Energy
     One of Brazil's infrastructure sectors that largely lacks investments is
 electric energy. This is manifested in the growing concerns voiced daily in
 the media by various members of society with regards to the possibility of the
 government initiating strict rationing in upcoming months. The country that
 built Itaipu -- one of the world's largest hydroelectric plants -- on the
 border with Paraguay, stopped investing in new projects several years ago when
 public companies from the sector experienced a decline in government funding.
 Private, domestic and foreign investors have come together with an interest in
 filling this void, but have met with prohibitive regulatory barriers. The
 outcome: industry and trade, and even residential consumers, may face an
 extended period of scarcity and high prices, with other inevitable
 consequences.
     It was with this scenario in mind that Abdib and its partner, Alcantara
 Machado Feiras e Negocios, have placed at the top of Infra2020's agenda a
 large exposition on electric energy investment projects called Infra GTD 2001
 (Generation, Transmission and Distribution), scheduled to be unveiled in Sao
 Paulo between April 24 and 26, 2001.  Its objective is to bring project
 developers, project owners and potential investors face-to-face to negotiate
 in well-equipped data rooms.  In reality, there are more than 700 GDT projects
 in Brazil that could absorb nearly US$90 billion.
     To debate the country's energy problems from the investment perspective
 and, most importantly, the obstacles impeding their timely resolution, an
 international forum will be simultaneously held, with the participation of
 experts from several countries, businessmen, banking agents, market analysts,
 government representatives and, primarily, regulatory agencies.  The main
 topic of the forum will be "Viabilizacao de Novos Investimentos em GTD" (The
 Viability of New Investments in GTD).
     In the coming months, the Infra 2020 Program has similar initiatives
 scheduled for the following sectors: Infra-Tourism, Basic Sanitation, Infra-
 Petroleum/Gas, Infra-Intermodal for the transportation and logistics sector
 and Alcoolchemical, for alcohol and biomass sectors. During the second half of
 the year, an event called Infra2020 will be held in a European city to be
 announced.
     "By offering such great opportunities for good business in a growing
 economy with low inflation, as well as a consolidated democratic structure, we
 are certain Brazil will be a strong option for investors," concluded Abdib's
 president.
 
 SOURCE  Associacao Brasileira da Infra-estrutura e Industrias de Base