Brazilian infrastructure financing model remains to be reformed
May 27, 2019 08:47 Source: "China Social Sciences" Journal of Social Sciences May 27, 2019 Author: Reporter Zhao Qi

May 15,Brazilian Business Leaders (LIDE) held a forum with the theme of "Investment Opportunities in Brazil and the Resumping of Growth" in New York.。The participating scholars expressed their opinions on the relevant topics of the private sector's funds in the field of Infrastructure construction。They think,Reform infrastructure financing model can not only solve financing problems,It will also become the key to promoting the sustainable development of Brazil's economy。

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Since 2014,Brazil infrastructure construction seriously relies on Brazil's State Development Bank。Due to the long loan approval cycle、Cumbersome procedures and other reasons,Brazil's infrastructure construction speed is difficult to meet national development requirements。At the same time,According to relevant agencies estimate,2019-2024,The funds required for the construction of Brazilian infrastructure are huge。For this,The American Development Bank and the World Economic Forum jointly released a report,It is recommended that Brazil Bet365 app download introduced private sector participation in the field of bet365 live casino games infrastructure construction,Effectively solve the financing problem of infrastructure construction。

Member of the Executive Committee of the World Economic Forum、Director of the Investment and Infrastructure Department, Maha Eltobgy, believes,Brazil's infrastructure construction lag,It has hindered its economic development。If Brazil wants to return to the sustainable growth track,It is necessary to increase the amount of infrastructure investment to more than 2 times the present。Facing a large amount of capital gap,Open infrastructure construction field is an effective method。This reform not only requires government support,It is necessary to fully consider the complexity of investment、scientific and long -term,All stakeholders must be negotiated together to achieve the expected effect。

Eltuji Suggestion,National Development Bank of Brazil should change the role,The provider of infrastructure investment funds transitions to the manager of private funds at home and abroad。Where,The most important step is to reform the original financial instruments and rules of the bank,dual functions that can have the dual function of controlling risks and attracting investment。Because in the field of bet365 live casino games infrastructure construction,Railway、Urban Highway、Water supply and sanitary facilities project,Not only does it need to control the construction cycle,Make sure investment returns。Chile and Peru and other countries have piloted in the energy field。Signing an agreement with foreign companies,These countries can not only improve their power generation capabilities,Reduce the electricity price,You can also ensure the income of the investor。

Agustin Aguerre, manager of the infrastructure and energy department of the Americas Development Bank, mentioned,Brazil infrastructure construction funds seriously depend on the single source of the Brazilian National Development Bank,Thus causing a lot of challenges。First,Low efficiency is low,Sometimes the cycle even reaches more than 2 years,Seriously dragging the progress of the project。2,In the past 5 years,Brazil's domestic economic downturn,As a result, the country's willingness to invest in infrastructure decreases。third,There are many new regulations and regulations in the "Basel Agreement III" introduced in 2010,Restricted Commercial Bank of Brazil to provide long -term and transitional loans,It makes them unable to participate in infrastructure Bet365 app download construction。fourth,Lack of large、Agency that can meet the infrastructure engineering loan standard,The ability of the local capital market for large project financing is still limited。Fifth,Many infrastructure projects lack attractiveness,Can't attract attention from investors and financial sector。Therefore, the Brazilian government should take action,Establishing a special department to promote relevant government agencies、Regulatory agency、A cooperation between financing institutions and construction units,Improve the transparency of each link,Improve investor confidence and financing conditions。

  Public and private cooperation solve funding problems

The introduction of private capital in infrastructure construction does not mean to abandon the use of national public funds。but but,How to balance the two is very critical。Due to excessive private capital, it will lead to excessive interest,So as to violate the original intention of infrastructure construction。and the proportion of public funds is too large,will also make the project construction lack of flexibility,Loss investors。For this,The International Financial Corporation of the World Bank, Veronica Nyhan Jones, a sustainable infrastructure consultant, Bet365 app download told this reporter,Due to Brazil's insufficient investment in bet365 live casino games infrastructure construction,Learn serious lag in the development of energy and logistics,Therefore, these two fields should become the focus of future construction。other,According to relevant agencies estimate,In the next 5 years (2019 to 2024),Brazilian infrastructure construction funds average will reach about 3%of the national GDP each year,About 2050 billion Leiya。Where,60 billion Real can pass equity financing,Brazil National Development Bank contributed 30 billion Laer,The remaining 115 billion Real needs to provide the private sector。This model can maximize the project's interests,It is also the best cooperation state for the stakeholders。

Jones also suggests,Brazil should attract foreign investment through reducing exchange rate risks,For example, an open part of infrastructure projects and settle income in the form of US dollars,This will attract a large number of international investors and international funds,to increase the liquidity of funds。At the same time,Activity or related clauses,Allow foreign exchange rate hedging,to increase the liquidity of the currency exchange market。other,Also reduce construction risk through local market Bet365 app download tools。Encourage capable companies to guarantee infrastructure construction projects,Make sure the project project is completed as planned,Control and supervise the progress of the entire project,to reduce operating costs。

Lutfey Siddiqi (Lutfey Siddiqi), a professional visitor professor at the School of Economics, London, said,The responsibility for improving the construction of Brazilian infrastructure should be jointly assumed by the public and private sector。The government can issue bonds、Give guidance and support for setting up investment standards。Private institutions can be regulated projects、Procurement and Construction Contracts,Make sure the construction progress is played。Both must cooperate with each other to achieve the expected effect。Also pay attention,Sometimes a financing model,Not suitable for all infrastructure construction。For example,Infrastructure construction financing plan for transportation,It may not be suitable for renewable energy projects。So,Need finance、Plan、Traffic、Energy and other departments carefully studied together,Promoting the project's final implementation and completion。

Editor in charge: Cui Cen
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