Long-term financing and risk allocation

Abstract

This position paper reflects the perspective presented at the Workshop "Pensando o Futuro do Setor Energético Brasileiro" and focuses on issues related to creating conditions for long-term financing and its risks, including: - Discussion of the prerequisites to develop a robust financial market to support the long-term development of the infrastructure sector in Brazil in a post-BNDES era, using the power and gas sectors as pilot cases; - Analysis of additional financial products and facilities to support long-term financing in the power and gas sectors, such as guarantees and insurance products, provided by BNDES, insurance companies, and multilateral institutions; and - (Re)assessment of the risk management attitude and mindset in existing project finance practices, identifying current allocation patterns and future trends to attract new capital.