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  • xml:namespace prefix = st1 />Brazil’s government is examining the establishment of an infrastructure fund to finance investments. This would be a key way to help raise the US$20bn investments needed every year for a decade to clear bottlenecks such as inefficient ports, lack of treated water and sanitation, poor power supplies, decrepit railroads and chaotic public transport systems in the country.

    Once a decision is made the fund could be up and running in two-to-three months. It would use existing assets and receivables as backing for shares to be sold to private investors and multilateral agencies.

    The fund would have to be managed by Brazil’s national development bank BNDES, while private capital would help either by structuring the fund or buying its shares. The Inter-American Development Bank (IADB) and the World Bank should also participate.