ANNOUNCEMENT 15 Jan 2015

On 15 January 2015, the Brazilian Development Bank (BNDES) announced that it is going to finance 22 new wind farms with 1.7 billion real (USD 570 million) in the Northeast Region of Brazil. 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



BNDES news item of 15 January 2015, BNDES approves four new projects and ends 2014 with a R$ 6.6 billion record investment in wind farms: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_en/Institucional/Press/Noticias/2015/20150115_eolicas.html

Local content requirements according to BNDES for wind turbines: http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/produtos/download/credenciamento_aerogeradores_anexo1.pdf


Inception date: 15 Jan 2015 | Removal date: open ended
Still in force

Local sourcing

In the 22 windfarm projects with a total financing volume of USD 570 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.
Inception date: 15 Jan 2015 | Removal date: open ended
Still in force

State loan

The 22 new, privately-owned wind farms goes into four regions: (1) 580.8 million real (USD 193.82 million ) for seven wind farms with 107 wind turbines in the state of Pernambuco; (2) 555 million real (USD 185.21 million) for seven wind farms with 115 wind turbines in the state of PiauĂ­; (3) 379.6 million real (USD 126.67 million) for six wind farms with 72 wind turbines in the state of Rio Grande do Sul; and (4) 154.6 million real (USD 51.59 million) for two wind farms with 22 wind turbines in the state of Rio Grande do Norte.