Mercosur, a trade bloc of $3.5 trillion, including Brazil, Argentina, Paraguay, Bolivia, and Uruguay, launched a major initiative.
They unveiled a $10 billion fund dedicated to infrastructure projects across South America.
This significant move, known as the “Routes for South American Integration,” aims to improve connectivity in the region.
The announcement was made at the 63rd Mercosur Summit in Rio de Janeiro.
The initiative’s focus is on developing critical infrastructure like ports, airports, roads, rail, and power transmission systems.
Several key institutions financially back this large-scale project. The Inter-American Development Bank IDB is contributing a substantial $3.4 billion.
Similarly, the Development Bank of Latin America and the Caribbean is adding $3 billion. The Brazilian Development Bank matches this with another $3 billion.
Additionally, FONPLATA, a financial entity owned by Argentina, Bolivia, Brazil, Paraguay, and Uruguay, is putting in $600 million.
Aloizio Mercadante, Brazil’s Development Bank BNDES president, specified their role. The bank is the main provider of long-term financing for large corporations in Brazil
The bank will finance projects within Brazil, while the other institutions will fund efforts extending beyond Brazil’s borders.
This collaboration marks Mercosur’s largest fund for South American integration. The plan comprises five key projects.
Mercosur’s largest fund for South American integration
These projects are aimed at improving infrastructure across various Brazilian states enhancing connectivity.
They facilitate better links with neighboring countries, including Guyana, French Guiana, Suriname, Venezuela, Colombia, Peru, Ecuador, Bolivia, Argentina, and Chile.
One primary goal is to shorten the transportation time of goods between Brazil and Asia, symbolizing a leap in regional integration.
This initiative, developed through extensive dialogue among leaders, aspires to succeed where past attempts over the last thirty years did not.
Overall, this initiative by Mercosur signals a significant commitment to regional cooperation and economic integration in South America.
It highlights a concerted effort to enhance connectivity and economic growth across the continent.