The Memorandum of Understanding signed between the governments of Brazil and China in June to recreate the Cooperation Fund for Expansion of Productive Capacity for Sustainable Development was published on August 20.

Created in 2017, the Brazil-China cooperation fund was reactivated by the Ministry of Finance this year. Operating as an investment screening platform, the Fund aims to finance projects mainly for the green economy, such as clean energy, energy transition, water supply, etc. However, it also mentions the possibility of investing in digital infrastructure.

The operating body of the Fund here will be the National Bank for Economic and Social Development (BNDES) and, in China, the China-LAC Industrial Cooperation Investment Fund (ClaiFund, short for Industrial Cooperation and Investment Fund).

The only requirement that has already been clearly outlined is that such projects be carried out in Brazil and have the participation of Chinese investors. A monitoring committee will be created to oversee the operation of the Fund.

(Source: TeleSíntese, on 20 August)