ANNOUNCEMENT 17 Jan 2014

On 17 January 2014, the Brazilian Development Bank BNDES announced that it will finance two aquaculture projects through its BNDES Proaquicultura program. The two companies, Geneseas Aquacultura Ltda and Delicious Fish Agroindústria e Comércio de Pescados Ltda, from the central-western region of Brazil will benefit from the financial support. The financing for these farms entails the condition to source part of the construction inputs from Brazil.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



FIS Fish Information & Services, 17 January 2014, 'BNDES finances with USD 14.5 million two aquaculture projects': http://www.fis.com/fis/worldnews/worldnews.asp?monthyear=&day=17&id=65833&l=e&special=&ndb=1%20target=

Brazilian Development Bank BNDES, 9 January 2014, 'BNDES aprova R$ 34,3 milh?es para projetos de aquicultura na regi?o Centro-Oeste': http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Sala_de_Imprensa/Destaques_Primeira_Pagina/20140109_aquicultura.html#

BDNES Proaquicultura: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/Programas_e_Fundos/BNDES_Proaquicultura/#

Circular No. 04/2013-BNDES of 5 February 2013, see 1.4 and 3.1: http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/produtos/download/Circ004_13.pdf

Colby, Seth. (2012). Explaining the BNDES: what it is, what it does and how it works. CEBRI Artigos, Volume 3, Ano VII, p. 6: http://www.cebri.org/portal/publicacoes/cebri-artigos/explaining-the-bndes

BNDES, Condi??es espec?ficas: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/clientes.html

BDNES, Itens pass?veis de apoio condicionado: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/itens_apoio.html


Inception date: 09 Jan 2014 | Removal date: open ended
Still in force

Local sourcing

In the 2 aquaculture projects with a total financing volume of USD 15 million, the Brazilian Development Bank imposes strict local content requirements on the production of wind turbines, e.g., towers and blades (at least 60%) and some parts of the rotor and the nacelle. Besides this, the bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil.

AFFECTED SECTORS

 
Inception date: 09 Jan 2014 | Removal date: open ended
Still in force

State loan

Geneseas Aquacultura Ltda will receive a 15.8 million real (US$ 7 million) loan to finance two fish farms and one processing house. Delicious Fish Agroindústria e Comércio de Pescados Ltda receives a fund of 18.5 million real (US$ 8 milion) to extend its pisciculture installations. BNDES founded the Proaquicultura program in 2012 with the goal of improving the production chains of the national fisheries sector. The program has a budget of 500 million Real until 31 December 2017. BNDES has the power to back 80% of the investments carried out by domestic companies. In case of machinery and other equipment of national production, the BNDES has the right to support the investments by 100%. 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. This also applies to the Proaquicultura program (see Circular No. 04/2013-BNDES).