The Brazilian government has begun the process of receiving applications for financing or equity from the Brazil-China Cooperation Fund for the Expansion of Productive Capacity, said on Monday in Brasilia the Secretary for International Affairs of the Ministry of Planning, Development and Management, Jorge Arbache.

This fund has an initial allocation of US$20 billion, of which US$15 billion is guaranteed by China and the remaining US$5 billion by Brazil, with parity management, with three votes on each side. The Chinese side also gave up the requirement that the funded projects must contract construction or purchase equipment in China.

Arbache, who is also executive secretary of the Fund, said this initiative is unique and innovative and is an important achievement for both countries.

China’s ambassador to Brazil, Li Jinzhang, said on the occasion that China is going to seek out this experience now launched with Brazil in other Latin American countries, and that this fund should operate according to market principles, with careful risk assessment, based on individual projects to achieve systematic productive cooperation between the two countries.