Investing in Brazilian infrastructure

Brazil is likely to be a permanent fixture in the headlines over the coming years as it prepares to host the World’s two biggest sporting events – the 2014 FIFA World Cup and the 2016 Olympics.

Antonio Corrêa Meyer, Founding Partner of leading local firm Machado Meyer Sendacz & Opice Advogados, however, is quick to warn that the country must make major investments in its infrastructure if it is to fulfil its ambitions.
“The government seriously needs to update the country’s infrastructure, and not just those related to the World Cup and Olympics,” he says. “We need to improve airports, roads, ports and energy projects otherwise Brazil will never be genuinely able to expand.”

Brazil_Flag

The Government has nonetheless made ambitious soundings, particularly with the announcement last year of plans to invest $350bn into the country’s infrastructure. This programme includes major projects such as the proposed $19bn high speed rail link between Rio de Janeiro and Sao Paulo.

Meyer says that the authorities are looking closely at the best way to finance such schemes but, inevitably, they will require a large amount of private finance. With the Brazilian Real being so strong and Brazilian banks offering high interest rates, the hope is that more international sponsors and financiers will get involved and drive the market forwards.
“BNDES, the state-owned bank, has so far played an important role financing infrastructure developments but the Government is now looking at new instruments, such as PPPs and better tax regimes, to help international companies get more involved in projects.”
With concern mounting that infrastructure for both the World Cup and the Olympics may yet hit delays, ensuring the right developers and financing mechanisms are in place is crucial, Meyer concludes. “Brazil needs to invest in its infrastructure if it is to invest in its future.”

Investing in Brazilian infrastructure

Garcia-Sicilia

thelatinamericanlawyer.com

The Latin American Lawyer is a bimonthly digital magazine, published by Iberian Legal Group, available in Spanish and Brazilian Portuguese. It represents the main source of information in the legal business sector in America Latina. The digital magazine – and its portal – address to the protagonists of law firms and in-house lawyers. The magazine is available for free on the website and on Google Play and App Store.

In every issue of the magazine, you will find rankings of lawyers, special report on trends, interviews, information about deals and their advisors.

For further information, please visit the Group’s website www.lcpublishinggroup.com

Iberian Legal Group
Registered office: C/ Manuel Silvela, 8 - Oficinas 1 Dcha 28010 Madrid España

Copyright 2022 © All rights Reserved. Design by Origami Creative Studio

SHARE

Share on linkedin
Share on twitter
Share on facebook
Share on whatsapp
Share on email
Share on telegram