Asian and Brazilian development banks ink investment deal
The Beijing-based Asian Infrastructure Investment Bank (AIIB) has committed BRL 16.7 billion (USD 2.9 billion) in climate and infrastructure investments in Brazil through the National Development Bank (BNDES). The agreement was signed during the G20 Summit in Rio de Janeiro.
The money will be used for projects within the Climate Fund, managed jointly by BNDES and the Brazilian Environmental Ministry, and the government's Growth Acceleration Program (PAC), a flagship initiative of Luiz Inácio Lula da Silva's terms, relaunched in 2023 to jolt the economy through infrastructure works.
According to BNDES, investment in PAC projects must promote “economic integration between Brazil and Asia” in sectors such as transport infrastructure, digital and energy connectivity, and water and sanitation.
On the climate front, the banks expect to contribute to efforts to finance reconstruction projects in the Rio Grande do Sul state, which was ravaged by floods in May and has been receiving resources from the Climate Fund, as well as support urban projects in the city of Belém, which will host the COP30 summit next year.
The AIIB is a multilateral institution focused on the development of Asia. It also has non-regional members, including Brazil. Earlier this year, the AIIB and BNDES signed an intention letter to invest in Brazil’s sustainable infrastructure.
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