Agência Brasil
São Paulo – The Brazilian federal government believes that it will be able to increase foreign funds for investment in infrastructure in a short period of time, and that it will guarantee Latin American leadership in terms of volumes collected, surpassing Mexico.
This forecast was announced this Tuesday (22), by minister of Planning Guido Mantega. The minister opened the Forum for Investment in Infrastructure, which will end today (23), at Meliá Hotel. At the meeting, Mantega presented the government targets. Little later, he joined the presidential party that travelled to New York yesterday afternoon.
The minister pointed out that in New York he will be presenting infrastructure investment opportunities to around 500 investors. He intends to convince them that the sector for greater return than in financial market investment. "As (internal) tariffs drop and legislation to guarantee profitability is created, the private sector will migrate to this modality of investment," stated Mantega.
The minister estimated that Brazil needs US$ 20 billion in infrastructure investment a year, with US$ 5.5 billion for electric energy, US$ 6.5 billion in oil and gas, US$ 4 billion in transport and logistics, US$ 2 billion in sanitation, and US$ 2 billion in telecommunications.
Mantega stated that stagnation of the internal market made foreign investment in the country drop from US$ 16.5 billion in 2002 to US$ 10.1 billion in 2003.
He believes that the Public-Private Partnership (PPP) project, currently being analysed by the Senate, should be voted by July, even before the parliamentary recess, scheduled for July. Mantega minimized the risk of lower capital entry due to the possible increase of interest rates in the United States.
"The increase in interest rates (in the United States) will be lower than was initially believed. The Brazilian economy has already absorbed this change in assets and investments. We have already paid the price through the reduction of some assets, and there will be no greater consequences," stated Mantega.
