ANNOUNCEMENT 29 Jan 2014

In January 2014, the government of Brazil announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



BNDES, news item of 29 January 2014 (in Portuguese): http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Sala_de_Imprensa/Destaques_Primeira_Pagina/20140129_transmissao.html

BNDES, conditions of financial support for the auction of the Monte Belo dam power transmission system (in Portuguese): http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Areas_de_Atuacao/Infraestrutura/Energia_Eletrica/linhas_transmissao_belo_monte.html

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: 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 SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 29 Jan 2014 | Removal date: open ended
Still in force

State loan

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.

 
N/A
 
N/A