Financing Infrastructure Projects in the Northeast

By
Rachel Glickhouse

During the final portion of the panel on opportunities and challenges of infrastructure in Brazil’s northeast, José Sydrião, director of Management Development at the Bank of the Northeast, spoke about projected levels of investment in infrastructure projects in the region and, like the previous panelists, Sydrião enumerated the reasons behind the northeast’s economic boom, including the availability of credit for small businesses and the success of conditional cash transfer programs. He added that rising costs in Brazil’s south and southeast have brought business interests to the more affordable north.

Sydrião also talked about the importance of public-private partnerships (PPPs). He said the Bank of the Northeast estimates current and upcoming projects come to $8.7 billion for PPPs, citing the Suape complex as an example of a successful coming together of government ventures with private companies.

He discussed what some of the important economic opportunities in the region were. According to the Bank, 200,000 hectares in the northeast are available for agricultural exploitation, specifically to grow fruit and olives. The Transnordestina Railway will also be crucial for grain processing and export, since the new line will bring grains from the interior of the north and northeast to the coast. Through 2016, the railway could transport an estimated 15 million tons of goods.

Sydrião pointed out the importance of the Panama Canal expansion. It will allow for tankers to nearly double their loads, and will bring greater amounts of trade to three ports situated in the northeast. This increased access through the Canal will also give the northeast greater access to Asia.

Sydrião: the #Panama #canal expansion means big impact on Brazilian northeast ports with access to Asian markets bit.ly/zoV9qO #ascoaBR
— AS/COA Online (@ascoa) February 8, 2012

Finally, Sydrião outlined projections for infrastructure investments over the next four years.

Watch a video of Sydrião’s presentation.

Rachel Glickhouse is the editorial associate at AS/COA Online.