ANNOUNCED AS TEMPORARYNo
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.
⚑ Please report this page in case you detect an inaccuracy in its content.