Published On: October 30, 2013

Chinese to Invest U$10 billion in Brazil

Share This

China’s third-largest company and the world’s biggest electric utility, state-owned State Grid Corporation of China, plans to invest U$10 billion in Brazil through 2015, Brazilian media reported. State Grid accounts for 88 percent of electrical transmission in China.

The president of State Grid’s Brazilian subsidiary, Cai Hongxian, announced that “aggressive target” in an interview with Brazilian state news agency Agencia Estado, saying the company was focused on the return it believes it will receive on its investment in various projects.

State Grid has been a presence in Brazil since 2010, and announced recently it intends to participate in auctions for the São Manoel and Itaocara hydroelectric projects, as well as bidding for a contract to transmit electricity from the massive Belo Monte hydro station, which is being built in the state of Pará. 

“Projects like this are the reason we’re here,” Cai said in reference to Belo Monte, which will be the world’s third-largest hydroelectric plant when it’s finished, after China’s Three Gorges and Brazil’s Itaipu.

Displaced Residents stand atop a temporary earthen dam to protest the construction site on Belo Monte dam on the Xingu River on June 15, 2012 near Altamira, Brazil. (Mario Tama/Getty Images)

The construction of the Belo Monte dam and hydroelectric station has been a controversial issue the past few years among environmental groups in Brazil. Environmentalists are concerned about the destruction of land, as the project will flood 506 sq. kilometers (195 sq. miles) of rainforest. Additionally, there is considerable concern for the indigenous people who live in the rainforest, as Belo Monte could displace as many as 25,000 people.

In 2010, State Grid acquired seven Brazilian electricity transmission companies, which are subsidiaries of a consortium made up of Spain’s Grupo Cobra, Elecnor S.A., and Grupo Isolux, for $989 million.

Brazil Goes to China

In a related story, Brazilian officials will be traveling to China to take part in high-level meetings. Brazil will be represented by Vice President Michel Temer, Agência Brasil reported. Businesspeople and ministers will accompany the Vice President on his trip to China to discuss progress in Brazil-China relations and business opportunities in the areas of trade, infrastructure, science and technology, and education.

Vice President Michel Temer

On November 6 in Guangzhou, Vice President Temer will discuss the main economic, commercial, and financial issues between the two countries with Chinese deputy Prime Minister, Wang Yang, the head of the Chinese delegation.

During his week-long visit to China, Temer will also attend the opening ceremony of the forum for Economic and Trade Cooperation between China and the Portuguese-speaking countries in Macau. The forum will bring together representatives from Angola, Cape Verde, Guinea Bissau, Mozambique, East Timor, and Portugal.

After his meetings in Guangzhou and Macau, Temer will make an official visit to Beijing, where he is scheduled to meet with Chinese President Xi Jinping.

Macau, China

[From the websites of Fox News Latino and Macauhub]



Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>