Long-term financing and risk allocation in infrastructure in Brazil

Abstract

On March 15 and 16, 2017, the Centre for Regulation and Infrastructure Studies of Getulio Vargas Foundation (Centro de Estudos em Regulação e Infraestrutura-Fundação Getulio Vargas, FGV CERI) promoted the first Policy Dialogue – Long-Term Financing in Infrastructure and Risk Allocation in Brasilia. The discussion presented in this document is based on preliminary findings from the partnership between FGV and the World Bank. The event also had support from Norton Rose Fullbright. Additional support was granted by the International Chamber of Commerce (ICC). The main purpose of the discussion was to identify the reasons underlying the financing infrastructure gap in Brazil. For this, we considered the experience from the energy sector and new concepts to be discussed with stakeholders. The event is part of a wide range of initiatives targeting a more robust environment for financing, capable of promoting sound long-term investments with private sector participation from Brazil and abroad, and boosting access to alternative sources of capital. The event program was structured through some selected topics that are part of the research conducted under the partnership between FGV and the World Bank. These topics are the main subject of this Policy Brief and include currency risks and hedging, dispute resolution mechanisms and arbitration, compliance, political risk, and others. In the sections that follow, we summarize the structure adopted for the event.