Brazil set to unveil infrastructure debenture frameworks for ports, airports

The Brazilian government is preparing to publish details of the regulations for issuing infrastructure debentures to finance port and airport projects. 

"Next week we likely publish details of the frameworks for the use of debentures to finance investments in ports and also the airport sector, more associated with regional airport projects," Silvio Costa Filho, minister of ports and airports, responded to a question from BNamericas during a meeting with the press.

Debentures have become a major mechanism for financing projects in the country’s infrastructure sector.

There are two types of used by infrastructure players: incentive debentures, which offer a tax break to investors and which have been available since 2011; and infrastructure debentures, which provide a tax exemption to the company issuing the paper. 

The latter mechanism was authorized at the start of this year, but companies in the port and airport sectors were still not using them due to the lack of specific frameworks for their issuance.

The preparation of the rules for the financing mechanism is being carried out as part of the government's efforts to facilitate both public and private investment in the infrastructure sector.

"Now, during August, we will have a bidding process where we will offer lease contracts for five port terminals, and our expectation is to offer a total of nine terminals by the end of this year and a total of 33 contracts in the port sector through 2026," Costa Filho said.

According to the minister, public investments in the port sector are estimated to reach 2 billion reais (US$365 million) this year, up from 1bn reais in 2023. Meanwhile, private sector investment in the sector is forecast to total 12bn reais in 2024, up from 10bn reais in 2023. 

The Brazilian government is trying to push forward with concession contracts to operate waterways to boost this mode of transport and reduce national dependence on the road network. 

"We see waterway concessions as an initiative both to diversify our logistical matrix and also in our plan for integration with other countries in South America," said Costa Filho.

This week, representatives of national waterway regulator Antaq are visiting Argentina to discuss the project to offer a concession for the Paraguay river waterway with shipping companies and government agencies.