Int'l financial support crucial for Brazil infra projects

By
Tuesday, September 30, 2014

International financial support is crucial for Brazil's construction projects, especially in the basic water and sanitation sector, José João Fonseca, president of local water utility Águas Guariroba, told BNamericas.

"While our holding company Aegea regularly turns to local institutions such as national development bank BNDES and federal savings bank Caixa , it is also receives financial support from major international financiers, including the World Bank's International Finance Corporation (IFC) and the Government of Singapore Investment Corporation," Fonseca said.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

As large scale investment is continuously needed in waterworks projects, diversifying funding sources is a key part of our strategic plan, according to the executive.

The performance expectations of international investors are high. This reflects positively on the work carried out by water utilities, which benefits users and improves services, he added.

Fitch ratings analysts have said that Brazil's infrastructure projects rely too heavily on funding from BNDES.

The development bank accounts for some 23% of the value of the country's infrastructure projects.