According to a survey conducted by Estadão, based on government and bank estimates, the pandemic is expected to cost around R$ 700 billion ($ 140 bn) in 2020 alone, the equivalent of almost 10% of GDP and R$ 3,300 ($660) for each Brazilian. From the public accounts point of view, this represents almost six times the deficit forecast for this year before the pandemic, of R$ 124.1 billion ($25 bn).
President Jair Bolsonaro signed a provisional measure that opens a budget credit of R$1.9 billion ($380 mm)to ensure the purchase of 100 million doses and local production of the possible vaccine against Covid-19 developed by the British laboratory AstraZeneca and the University of Oxford, and said he hopes to have the problem of the pandemic solved with the vaccination of the population in early 2021.
The National Electrical Energy Agency (Aneel) approved the announcement of the transmission auction to be held in December. There will be 25 transmission lines and 12 substations. The works will require investments of R$ 7.350 billion ($1.4 bn) and delivery time between 42 and 60 months. It is estimated that 15 thousand jobs will be generated. The contracts will have a 30-year term.
The Copom (Monetary Policy Committee) from Brazilian Central Bank cut the basic interest rate (Selic) by 0.25 percentage points, from 2.25% to 2% per year. This is the lowest level since the beginning of the historical series in 1996. The decision was unanimous and came as expected by most market analysts.
A pilot project for the installation of solar panels in public schools in Paraná will start operating this year. According to the government, 224 schools will be covered with a total investment of R$ 46.5 million ($ 9.4mm). According to SEDU secretary, João Carlos Ortega, the target is that the program reaches 180 municipalities in Paraná in one year. Throughout the state, 5,500 schools will be able to adopt the solar generation system.
The Court of Auditors of the Union has renewed the concession for the Vitória-Minas Railroad. With this, Vale began on the so-called Ferrovia de Integração do Centro-Oeste (Fico). In addition to the implementation of Fico, Mato Grosso is waiting for another decision by TCU, which will deal with Ferrogrão, with 933 kilometres of extension, investments of R$ 8.4 billion ($1.6 bn) are expected in the concession project.
The growing interest of companies in supplying their operations with clean energy should be the main factor guiding investments in generation in Brazil in the coming years, with the reduction of construction costs of wind and solar plants making these businesses viable even with the coronavirus pandemic. The “green energy contracts” market in Latin America’s largest country has attracted giants in the global electricity industry, such as France’s Engie and the U.S.’s AES.
The MME has framed the wind power plants Ventos de São Roque, totalling 396 MW of installed capacity among 72 wind turbines in the municipality of Dom Inocêncio (PI), with the Special Regime of Incentives for the Development of Infrastructure (Reidi). Enel Green Power obtains a saving of approximately R$ 123.8 million ($24.6 mm) with the PIS/PASEP and Confins tax, with a total contribution of R$ 1.6 billion ($320 mm) for the works that begin next year.
The Itaipu hydroelectric dam will increase energy production starting Monday to help the Paraguayan soybean crop flow by water, the plant said. According to a statement from Itaipu, the measure, which will allow the export of 100,000 tons of Paraguayan grain, will remain in effect until Aug. 16.
BNDES will receive an injection of R$ 350 million ($ 70mm) from the Climate Fund, whose resources will be used to finance sanitation projects and solid waste collection. The fund was created in 2009 and allocates resources from the oil activity in the country to sustainable projects that help preserve the climate and reduce the emission of gases that contribute to the greenhouse effect.