© Xinhua/Zheng Jiayu
© Xinhua/Zheng Jiayu

The China Three Gorges group may put forward a proposal when the Brazilian government on 29 November auctions the concessions for construction and operation of hydropower plants, reported the Exame Brasil magazine.

A member of the Brazilian President’s economic team told the magazine have the the Brazilian government had eliminated the restriction that prevented proposals from foreign groups and companies, thus allowing the Chinese state to put forward a proposal.

The amendment to the law is due to the fact that many Brazilian companies are encountering difficulties in obtaining finance due to the economic crisis in Brazil.

Companies that previously had the help of the National Bank for Economic and Social Development (BNDES), are currently being denied loans due to state budget restrictions imposed by the federal government, according to a technical note from Credit Suisse Group AG dated 4 October.

Exame Brasil reported that Companhia Paranaense de Energia (COPEL) was expected to take part in the auction, as well as Companhia Energética de Minas Gerais (Cemig) and Companhia Energética de São Paulo (CESP), and there had also been expressions of interest from companies from the United States, Canada and Spain.

China Three Gorges struck a deal this year to buy the assets of Brazil’s Triunfo Participações e Investimentos (TPI), a company based in São Paulo with a strong presence in the segments of highway concessions, port and airport management and energy production.