Archive for the ‘Infrastructure’ Category

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Brazil, 20 years from now

February 24, 2010

From the Chrystal Ball series:

The Brazilian Ministry of Science and Technology released today a study that outlines how the country and the planet will (probably) evolve in the next 20 years. Produced by the Centro de Gestão e Estudos Estratégicos, the document offers a time line based on several sources. It is meant to help government plan its future strategies.

Part of its content is easily predictable, considering recent tendencies. But there are some surprises.

Among its main forecasts:

Economy

  • In four years, Brazil will go back to its tradition of successive commercial balance deficits
  • Brazilian Gross Domestic Product will be 925 billion dollars in 2015 (which means, less than our present GDP, around 1.6 trillion dollars. It is not very clear how Goldman Sachs, the original source of this information, came up with this number)
  • Brazil, the brand, will increase its value. The demand for products associated to the country’s cultural diversity will grow

Keep reading

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More investment in infrastructure

February 22, 2010

Madeira river, in the Amazon, where Jirau dam is under construction

A study released today by BNDES, the main federal bank responsible for financing infrastructure projects, reveals that Brazil will increase its investments in power dams, highways, railways, ports, telecommunications and sanitation. According to daily paper Folha de S. Paulo, around R$ 274 billion (151 billion dollars or 111 euros) should be invested between 2010 and 2013, 37.3% more than the volume spent between 2005 and 2008. BNDES didn’t publicize the investments made last year, during the global financial crisis.
These resources will finance such projects as the rocket train that should connect Rio and São Paulo at a cost of R$ 34.6 billion (19.1 billion dollars or 14 billion euros) in the next ten  years. It should also finance the hydro power dams of Santo Antonio and Jirau (6.4 gigawatts combined capacity), that are already under construction in Rondônia state, in the Amazon region, close to Bolívia, and the controversial Belo Monte power dam, in the state of Pará, also in the Amazon. With an estimated capacity of 11.3 gigawatts, Belo Monte is meant to be the second biggest hydro power plant in the country, after Itaipu, in the Southern state of Paraná. This project has been dragging for over 30 years due to the many environmental and social issues it raises, and the fierce opposition of environmentalists, indigenous leaders and singer/composer Sting. Its costs are estimated in R$ 16 billion (8.8 billion dollars or 6.5 billion euros) – but here, again there is controversy. Many Brazilian entrepreneurs have already indicated that this forecast is too conservative at it will probably cost twice as much.