The Government of Brazil is setting up a US$6.5-billion investment fund to boost solar and wind generation in the country’s northeastern region, Bloomberg reported.

The fund will include private investors and state-owned utility Companhia Hidro Elétrica do São Francisco (CHESF), Brazil’s Energy Minister Eduardo Braga said on Wednesday.

“The fund… [will] become a catalyst for Northeast region development,” Mr Braga stated.

Private investors will have a 51 percent stake in the fund, with CHESF owning the remaining 49 percent, according to Bloomberg.

The Government’s National Social and Economic Development Bank, known as BNDES, will manage the fund.