Beijing (China), May 24, 2004 (Agência Brasil) - The Chinese already have a place on the waiting line for the Public-Private Partnerships. They announced they have US$ 5 billion for investments in Brazil. Railways and ports are in the sights of the Chinese government, to facilitate the shipment of soybeans and iron ore. The first big step to turn these investments into a reality was taken today in Beijing, with the signing of a memorandum of understanding on cooperation between the Brazilian Ministry of Planning, Budget, and Management and the Chinese Ministry of Trade.
The document, which is aimed at intensifying economic and commercial relations, takes into account, on the one hand, Brazil's elevated production potential in alcohol, soybeans, lumber, iron ore, and steel products, and, on the other, China's interest in relying on a long-term supply of these products and its advanced technology in the areas of railway and port engineering. In the text Brazil and China pledge to establish a bilateral work mechanism to help and encourage cooperation between firms from the two countries in the spheres of trade, transportation infrastructure, energy, and joint investments.
"There is an explicit Chinese interest in the transport of raw materials such as soybeans and iron ore. They want a long-term supply guarantee, and they want the transportation to occur in a speedy and efficient manner. Therefore, they are willing to take on responsibility for some railways, ports, and other projects," informs the Minister of Planning, Guido Mantega.
The Asians are willing to provide cars, track, and locomotives in exchange for soybeans offered by producers as advanced payment for the use of the railways. They are also interested in the production of ethanol in Brazil for future exportation to China.
To expedite the investments, the agreement of intentions signed by the two countries determined the creation of a Mixed Working Group (GMT) under the supervision of the Sino-Brazilian Commission, coordinated by the Brazilian Ministries of Planning and Foreign Relations and the Chinese Ministry of Trade. All the segments interested in the improvement of the country's infrastructure - producers, shippers, and trading companies - will be part of the group.
According to José Carlos Miranda, secretary of International Affairs in the Ministry of Planning and a member of the GMT, the first meeting should take place in 30 days, and the first contracts should be signed by the end of the year.
Translator: David Silberstein
