Machado Meyer Advogados: Brazilian Project Finance and Infrastructure Outlook: 2017 and Beyond

Machado Meyer Advogados: Brazilian Project Finance and Infrastructure Outlook: 2017 and Beyond

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Chamber Member News Post Date: 06/16/17 Source: Machado Meyer Advogados By: José Virgílio Lopes Enei
Summary

In this article José Virgilio Lopes Enei at Machado Meyer, Sendacz e Opice evaluates the current state and future outlook of the Brazilian project finance and infrastructure markets.

Highlights of the infrastructure and energy markets in Brazil:

Brazil is a continental country with a population of over 200 million people, most of whom live in urban areas, particularly in the main cities. São Paulo, the most developed city in the country, is home to 21 million people living within its metropolitan area.

The country has a reasonably diversified economy, with a few world-class manufacturing industries (such as aircraft), a sizeable service sector (including some of the strongest financial institutions in Latin America) and notable strengths in the production and export of agricultural and mining commodities.

These characteristics make Brazil heavily dependent on suitable infrastructure and reliable energy sources, whether to handle logistical and energy needs of its manufacturing and commodity industries or to secure basic needs of its population.

Despite relevant public and private investments in infrastructure in the past two decades, Brazil has not yet developed a world-class infrastructure consistent with its needs or comparable to that of developed economies. This infrastructure bottleneck has an adverse impact on Brazilian productivity, competition and economic growth. However, it also offers relevant investment opportunities for local and international players interested in the infrastructure and energy industries. Listed below are some pertinent examples. Read Full Article