IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 29 Jan 2014 | Removal date: open ended
Still in force

Local sourcing

On 29 January 2014, the Brazilian Development Bank (BNDES) set the conditions for credit lines for the Monte Belo dam auction of 7 February 2014 where potential contractors will bid for the concessions of two electrical substations (auction 1) and a power transmission line of 2.000 km (auction 2). BNDES will only grant credit lines to companies with headquarters and administrative offices in Brazil.
 
The investments for both concessions are estimated to amount to 5 billion Real (US$ 2.25 billion).
 
In general, the Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil. In the case of companies with headquarters abroad, majority shareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirements on goods (mainly capital goods), services and software. However, it makes exceptions when there is no national production of those goods.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

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