Brazil: BNDES signs a loan agreement for wind projects with the German Development Bank

After almost 10 years since the last agreement, the National Bank of Economic and Social Development of Brazil (BNDES) and the German Development Bank (KfW Entwiklungsbank) signed a loan agreement to fund projects that provide wind power generation from Brazilian private companies, in the amount of approximately US $135.6 million dollars.

This new agreement is the eleventh (11th) that these two banks take forward, since they began relations in the early 60's, but had been frozen since 2000, after signing an agreement for US $150 million.

However, their interests converge again as the Brazilian bank is pursuing policies that encourage, through funding, alternative forms of power generation, focusing especially on the wind power, source that would largely benefit the Brazilian territory.

It is interesting to note that German Development Bank was created during the post-World War II period for the reconstruction of that country's economy. Once this objective was stabilized, it started to diversify its activities as directing resources to other countries, especially by allocating funding to countries under development, through the coordination of the German Ministry for Economic Cooperation Development (BMZ).