Chinese companies to invest in the Brazilian energy sector

Brazil might receive a wave of Chinese investment in the upcoming months, specially in the commodities and infrastructure sectors.  Consequently, Chinese investors were invited to take part in the next Brazil’s major energy bidding, which will happen in September, as featured on the O Estado de S. Paulo newspaper.

As Eletrobras’ (a major Brazilian electric utility company) subsidiaries go on sale, their assets are being offered to Chinese investors and from other countries as well. Another important business in the sector, the Santo Antonio Dam, in the north of the country, is also on sale. By the way, the Chinese have shown an eye to the hydropower sector. The article points out that China Three Gorges (CTG) bought participations in different dams such as Jupiá e Ilha Solteira.

Furthermore, the Brazil China chamber of commerce recently did a road show in China in order to attract investors’ interest. According to the same article, the Chinese invested between US$ 30 and US$ 35 bi between 2010 and 2015 in Brazil.

The Chinese are also keen to tap on the railway sector. They plan to build a railway link between Brazil and Peru, aiming at beans transportation. They believe that this link would make the transportation of commodities, in the long term, to China easier, from the Pacific coast.

Photo credit: Reuters

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s