Key Contributions by Development Banks
The Brazilian development bank BNDES is expected to contribute $3 billion to the effort. This funding will primarily target projects proposed by Brazilian states and municipalities that aim to connect to the regional network, according to the Planning Ministry. In addition, the Inter-American Development Bank (IDB) will provide $3.4 billion, the Development Bank of Latin America (CAF) will allocate $3 billion, and the regional fund Fonplata will contribute $600 million to support countries in the region.
These funds will be channeled into a dedicated infrastructure fund that is currently being developed and structured.
Brazil’s Integration Routes
The initiative emerged from a mapping exercise conducted by the Brazilian government in collaboration with the 11 states bordering neighboring countries. The exercise identified 124 projects deemed vital for promoting integration within the region along five key routes.
The minister in charge, Tebet, highlighted the potential to complete these routes by 2027. Speaking about the expected impact, she emphasized the significant time savings in transportation to Asia, estimated at up to 20 days, once the routes are fully operational.
Several of these identified projects were already part of Brazil’s Growth Acceleration Program (PAC) and had federal funding allocated to them. However, the minister highlighted that the newly opened market in Asia is expected to serve as a catalyst for enhanced connectivity. “It is evident by numbers and mileage that the easiest route is through the Pacific,” Tebet disclosed.
While the minister acknowledges the significant potential of these initiatives, she noted that there is currently no estimate regarding the growth in Brazil’s trade flow resulting from these integration efforts.