ANNOUNCED AS TEMPORARYYes
On January 15, 2014, the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) announced a new program that incentivizes R&D in the petroleum and natural gas sector. Under the INOVA Petro program, Brazilian companies operating in the aforementioned sectors can apply for subsidised financing for their R&D projects. This program defines companies that belong to the supply chain of petroleum or natural gas to fit under INOVA Petro's program. However, INOVA Petro takes priority in the financing of R&D of technologies related to submarine installations, oil well mounting and processing surfaces for the manufacture of oil and gas. The total funds available for INOVA Petro are R$ 3 billion (USD 1.3 billion). Beneficiary companies may also receive technical support from Petrobras.
Only companies that are based in Brazil may apply for these benefits and the financed projects must be undertaken on Brazilian territory. Companies that wish to apply must have revenues of over R$ 16 million or partner with a technological company which passes this revenue requirement. The interested companies must receive approval by the BNDES and FINEP in order to benefit from the program. The BNDES and FINEP may finance up to 90% of the projects' total cost.
The Brazilian government, alongside with the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP), run and finance the program "INOVA firms". Originally launched in 2013, this program's main goal is to innovate new technologies and make Brazilian companies more competitive. The program achieves this by targeting new sectors through time and giving their companies temporal benefits by 1) financing R&D, 2) financing companies directly as shareholders, or 3) providing loans at subsidised interest rates. Involved governmental entities may also guarantee future demand for their goods in some cases. Sectoral programs are launched at the discretion of BNDES and last for a predetermined period of time where companies may apply.
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