改善巴西的基础设施融资（英文版）_19页_6mb

Summary of "Improving Infrastructure Financing in Brazil"

Core Content

This report, co-published by the World Economic Forum and the Inter-American Development Bank, outlines a strategy to improve Brazil's infrastructure financing model. It highlights the need for a shift from a predominantly public financing system to one that involves a more balanced mix of public and private capital, with BNDES playing a catalytic role rather than being the sole financier.

Main Challenges

• Brazil's infrastructure investment as a percentage of GDP is significantly lower than in countries like China and India, at around 2%.
• The country has faced several challenges to its previous financing model, including:
  • The Lava-Jato scandal, which damaged the reputation of major engineering firms.
  • A severe economic crisis leading to an 8% GDP decline over two years.
  • Basel III regulations and loan defaults limiting long-term and bridge financing.
  • Limited insurance instruments for construction risks and increased costs of banking guarantees.
  • A narrow base of lenders and limited local capital market capacity for large-scale projects.
  • High yields on safe local currency assets reducing the appeal of infrastructure investments.

Key Recommendations

1. Crowd in foreign finance by mitigating currency risk

• Encourage the electricity sector to offer power purchase agreements (PPAs) in US dollars, up to a cap (e.g., 10% of sector revenues).
• Explore the use of hedging mechanisms to offset currency risk, such as offsetting foreign currency funding risks against variable government grants.
• Improve liquidity in long-term currency swaps to provide an alternative for projects where other financing options are not available.

2. Mitigate construction risks by enhancing local market instruments

• Differentiate between insurance policies for physical completion (Seguro Completion) and banking guarantees for financial completion (Fianca Completion).
• Standardize engineering, procurement, and construction (EPC) contracts, possibly adopting FIDIC rules.
• Develop "Mini-Perm" loans that allow commercial banks to transfer their loans to BNDES or another lender after project completion.
• Encourage multilateral development banks (MDBs) to guarantee infrastructure debentures during the construction phase, reducing overall project costs.

3. Recycle BNDES assets and further develop capital market instruments by broadening the investor base

• Facilitate the prepayment of BNDES loans through the issuance of infrastructure debentures, allowing BNDES to recirculate its capital.
• Extend the tax exemption on infrastructure debentures to bonds issued abroad, making them more attractive to investors.
• Shift tax benefits from investors to issuers to create a fairer competitive environment.

4. Reduce the impact of Basel III rules and other restrictions on long-term banking

• Encourage the use of capital market financing (debentures) instead of traditional bank loans, which are constrained by Basel III regulations.
• Structure BNDES operations through commercial banks as debentures to increase flexibility for banks in managing their balance sheets.

Key Information

• The report estimates that Brazil will need approximately R$205 billion in infrastructure investment annually from 2019 to 2024.
• Over 30% of this investment is expected to come from equity, with the rest from debt.
• BNDES is expected to fund only R$30 billion annually, leaving the majority of financing to be sourced from domestic and international capital markets.
• The role of BNDES is evolving from a primary financier to a catalyst that mobilizes private capital by reducing risks and improving market mechanisms.

Action Plan and Next Steps

• The report emphasizes the need for coordinated efforts among the public sector, private investors, and international bodies.
• It suggests that the government should take the lead in implementing tax reforms and policy changes, while private and financial institutions should standardize contracts and improve risk mitigation instruments.
• The ultimate goal is to enhance the access, quality, and coverage of infrastructure services for Brazilian citizens and to increase the country's long-term growth potential.

Conclusion

The report provides a comprehensive roadmap for Brazil to transition to a more sustainable and efficient infrastructure financing model. It underscores the importance of leveraging international capital, standardizing local instruments, and improving the role of BNDES as a catalyst in mobilizing private investment.