The attribution – to Chinese state-run utility State Grid Corp – of contracts to build and operate two new power transmission lines in Brazil is beneficial for both countries, Chinese experts say.

State Grid Brazil Holding, a local subsidiary of the company, earlier this month won the rights to the two lines – located in the western region of Mato Grosso. It will pay the Brazilian authorities 395.9 million reais (US$113.1 million) for the privilege.

“The project will yield a win-win result [for Brazil and China],” Zhang Jianping, an expert from the Academy of Macroeconomic Research at China’s National Development and Reform Commission, told Chinese newspaper China Daily.

He said the new scheme would help update Brazil’s power structure and boost internal demand for electricity equipment and steel. The new transmission lines would also promote China’s advanced technology and production capability, helping to promote exports of hi-tech products and services.

“The Brazilian government can count on infrastructure investment as a way to overcome the current economic recession and promote economic and social development,” Xie Wenze, a visiting scholar from the Chinese Academy of Social Sciences, told China Daily.