Brazil is transitioning from a model in which public financing is the dominant source for its infrastructure needs to a more balanced model in which the National Bank for Economic and Social Development (BNDES) will be a catalyst for domestic and foreign private funding. This transition requires fundamental changes in instruments and rules to better manage risks and standardize the processes, contracts, financing instruments and insurance policies related to infrastructure projects and concessions needed to attract institutional investors. This report presents the opportunities and challenges before the country’s infrastructure sector, with a focus on improved use of project guarantees, mitigation of certain risks, and the use of an enlarged pool of financiers.

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