- Region: Latin America and the Caribbean
- Energy and Natural Resources
- Untied Loans
May 27, 2005
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed today a loan agreement and four memorandums with Brazilian government, governmental institution and energy and natural resources companies, respectively. Governor Shinozawa and the respective representatives of the organizations signed and exchanged these documents on the occasion of the economic and trade promotion event held in Tokyo attended by President Lula da Silva of Brazil.
(1) Loan AgreementAn Untied Two-Step Loan to Banco National de Desenvolvimento Econômico e Social (BNDES) for Promoting Infrastructure Development and Export
(Signatory: Minister of Development, Industry and Foreign Trade Luiz Fernando Furlan)
JBIC signed a loan agreement totaling US$500 million with BNDES, an official bank with a mission to advance national economic and social development. This is an untied two-step loan intended to finance domestic infrastructure development projects as well as capital investments made by Brazilian exporters, which include local Japanese affiliates. The loan will help improve the business environment for local Japanese affiliates and expand exports of energy and natural resources and other products to Japan.
- A Memorandum on Cooperation on the Clean Development Mechanism (CDM) with the Ministry of Science and Technology(Signatory: Ambassador Extraordinary and Plenipotentiary of Brazil Ivan Oliveira Cannabrava)
JBIC signed a Memorandum on Cooperation with the Ministry of Science and Technology, which presides over the country's Designated National Authority that is empowered to approve domestic CDM projects. The aim is to promote CDM projects and support Japanese firms in acquiring emission credits generated from such projects.
- A Memorandum of Understanding (MOU) for Strategic Partnership as well as an MOU on the REVAP Refinery Modernization Project with Petróleo Brasileiro S.A. (Petrobras)(Signatory: President and CEO José Eduardo de Barros Dutra)
JBIC signed an MOU with Petrobras, which plays a central role in implementing Brazil's national energy policy, with the aim of securing stable access to energy resources for Japan through further strengthening mutual ties. Separately, JBIC signed an MOU with Petrobras, Mitsui & Co. LTD., Itochu Corp., Sumitomo Mitsui Banking Corporation, Nippon Export and Investment Insurance, regarding the possible financing from JBIC for the REVAP refinery modernization project, one of the country's major refineries.
- An MOU with Companhia Vale de Rio Doce (CVRD) on the Logistics Infrastructure Program(Signatory: President and CEO Roger Agnelli)
JBIC signed an MOU with CVRD, the largest iron ore supplier in the world and the source of 20% of Japan's iron ore imports, to strengthen ties in regards to the CVRD's Logistics Infrastructure Program (renovation and expansion of railway, port facility, etc.) that aims to increase the company's capacity to supply iron ore.
- Following the summit meeting between Prime Minister Koizumi and President Lula da Silva on May 26, the Japanese and Brazilian governments made public the Joint Program for Revitalization of Economic Relations between Japan and Brazil. The Joint Program set forth the promotion of trade and investment, increased cooperation in the energy and natural resource sector, and cooperation for infrastructure development in Latin America. The other Joint Communiqué contained provisions on bilateral cooperation for environmental conservation in Brazil. These five documents, the agreement and memorandums that JBIC signed with Brazilian counterparties, are specific instances of cooperation based on the Joint Program and Communiqué.
- Brazil is endowed with abundant energy and agricultural resources. As one of the largest economies in Latin America, the country is also receiving attention for its business opportunities. Meanwhile, given its high potential for Environmental projects such as CDM projects, Japanese firms have been actively engaging in business activities, mainly in the energy and resource sector. As an official financial institution with a mandate to advance Japan's external economic policy and economic cooperation, JBIC will continue to cooperate in the country's infrastructure development, export promotion, and energy-related projects through a combined utilization of its multiple financial instruments, thereby supporting the country's sustainable economic growth.