BNE has US$1bn for infrastructure projects

Brazilian regional development bank BNE will lend 3bn reais (US$1bn) for gas distribution, power, water and sewerage and transport infrastructure projects in the northeast of the country in 2004, BNE director Victor Samuel da Ponte told BNamericas. "There is a lot of demand, especially for the gas projects," he said. The bank's total 2004 portfolio is 6bn reais, 2bn reais from federal government tax transfers and 4bn reais of unused reserves from previous years, da Ponte said. Credit demand from other sectors will make up the 3bn reais. In infrastructure, demand is coming from state-controlled gas companies as well as federal energy giant Petrobras, which are seeking financing for the expansion of gas networks in the region, da Ponte said. While seven of the nine states in the northeast region need the resources to expand operations of their state-controlled gas companies, two states - Maranhao and Piaui - need the resources to start them off, he said. "We now need the government's permission to lend to state companies and clearer rules for the gas sector," the bank official said. The mines and energy ministry said earlier this year it would give priority to expanding the gas market for the 419 billion cubic meters of offshore gas reserves. Both the ministry and the national oil agency ANP are studying new regulations for the gas sector.