The launch of the Brazil-China Cooperation Fund for the Expansion of Productive Capacity makes the construction of a refinery in the state of Ceará more feasible, according to the State Department’s International Affairs adviser, according to local press reports.

Antonio Balhmann, who has the responsibility of aligning Ceará’s interests with those of China’s investors after Petrobras cancelled the construction of the Premium II refinery in Pecém, added that political unrest in Brazil could interfere with the State’s ability to attract investment.

Balhmann said that he has been in contact with China’s Guangdong Zhenrong Energy (GDZR) every two weeks and added that the board of directors has hired a project analysis company, specifically to assess the feasibility of the Ceará refinery.

“On the 30th we will be in São Paulo to attend the launch of the Fund, demonstrating that the State remains very interested in this agreement with China,” said the International Affairs adviser of the Ceará government.

Balhmann added that the partnership between the government of Ceará and Guangdong Zhenrong Energy is at an advanced stage and should be presented to the Chinese commission responsible for international agreements later this year.

“It is only after the project is approved that the request for financing of US$4 billion to US$5 billion can be submitted to the Brazil-China Fund,” Balhmann said.