ANNOUNCEMENT 10 Aug 2015

On 10 August 2015, the Brazilian Development Bank (BNDES) announced to provide a loan for Tanac S/A for the construction of a wood pellet factory in Rio Grande do Sul. The loan, which is bound to the BNDES’s local content requirement policy, will finance two projects.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Tanac, press release of 18 November 2014, 'TANAC S.A. announces plans to construct a US$60 million wood pellet mill in Brazil ': http://www.tanac.com.br/en/news/tanac-sa-announces-plans-construct-us60-million-wood-pellet-mill-brazil

BNDES, press release of 10 August 2015, 'BNDES aprova R$ 59,4 milh?es para implanta??o de f?brica de biocombust?vel de madeira no RS': http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Sala_de_Imprensa/Noticias/2015/Energia/20150810_biocombustivel.html

Lucas Morais, 11 August 2015, 'Brazil's BNDES approves USD 17m for pellet factory in Rio Grande do Sul', SeeNews Renewables: http://renewables.seenews.com/news/brazils-bndes-approves-usd-17m-for-pellet-factory-in-rio-grande-do-sul-488009


Inception date: 10 Aug 2015 | Removal date: open ended

State loan

The Brazilian Development Bank (BNDES) announced to provide 59.4 million real (USD 17 million) to Tanac S/A for the construction of a wood pellet factory in Rio Grande do Sul. The plant is going to be Latin America’s biggest wood pellets production site with its produce destined for exportation. According to Tanac S/A, the construction of the factory started in October 2014 and is supposed to be completed by early 2016, with its pellets exportation scheduled to start in mid-2016. The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. In the abovementioned loan, the interest rates are at 7 percent per annum for SMEs and 9.5 percent per annum for all other types of enterprises, whereas the Central Banks overnight interest rate is at about 14 percent.

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AFFECTED PRODUCTS

 
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