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BRASILIA (Reuters) - A China-sponsored, $20 billion fund is ready to receive investment pitches, the Planning Ministry's foreign affairs secretary, Jorge Arbache, told journalists on Monday.
The fund agreed on last year is expected to help finance the construction of railroads. This will link Brazilian soy- and corn-producing areas to ports, potentially boosting Brazil's economy as it slowly emerges from a deep recession.
China also stands to gain because it is a large buyer of Brazilian grains. The fund`s investment decisions will be made by a committee composed of Brazilian and Chinese officials, taking into account both countries` priorities, Arbache said.
The fund's resources will primarily be allocated towards infrastructure, but will also accept financing requests related to manufacturing, agriculture and technology, the secretary said.
China will finance three quarters of the projects accepted by the fund, or $15 billion. The rest will come from Brazilian banks such as development lender BNDES [BNDES.UL], Caixa Economical Federal [CEF.UL] and private banks.
Reporting by Silvio Cascione; Editing by Taylor Harris