Sudeco seeks financial institution to manage development fund

Tuesday, April 17, 2012

Brazil's midwestern regional development agency Sudeco is seeking a financial institution to manage infrastructure projects under its development fund FDCO, director Marcelo Dourado told BNamericas.

Under the constitution, funds must be managed by a federally-controlled bank. However, the agency has yet to find one and is running out of time, according to the executive.

"Senator Lúcia Vânia is working on a bill to establish a midwestern regional development bank, BDCO, to manage the fund. Although I support the bill, it's unlikely that it will be approved by congress within the next few months, so we need to look for another institution in the meantime," Dourado said.

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Likely candidates include federally-controlled Banco do Brasil (BB), federal savings bank Caixa Econômica Federal (CEF), and federal district bank Banco de Brasilia (BRB), formerly Banco Regional de Brasilia.

FDO finances infrastructure and public services projects in areas such as basic sanitation and transportation, based on Sudeco's development plan. Sudeco represents the states of Mato Grosso, Mato Grosso do Sul, Goiás and the federal district.