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News release


28 August 2007

Brazil reveals 'greenification' of Amazon transport plans to visiting Lord Mayor of the City of London John Stuttard

Brazil's main development bank has revealed plans to drop a road scheme for the Amazon – in exchange for an environmentally-friendly railway, according to Lord Mayor John Stuttard who currently leads a City of London delegation on a two-week to the fast-growing, resource-rich country.

The environmentally-friendly scheme, which would limit lateral effects on protected forests, was discussed on Monday at a meeting with the Brazil development bank BNDES, which has a budget twice that of the World Bank.

“Brazil is taking a very strategic view of its incredibly rich environment and is strongly committed to protecting the Amazon and the other precious resources that it holds in stewardship for us all; this new project is a classic example of the imagination and determination that I have seen during my three week visit to this amazing country,” said the Lord Mayor.

So far in the visit, his delegation has met local, state and national politicians, the exchanges, institutions, the energy giant Petrobras, and business leaders in San Paulo, Porto Alegre, Rio de Janeiro (and later Brasilia) and has also discussed biofuel projects such as the sugar based ethanol, the carbon market, listings on the London Stock Exchange, and PPP (public private partnership) financing for new infrastructure.

The Amazon rail scheme, would be unusual in Brazil where railways are relatively uncommon, would need international construction and financial involvement, said Lord Mayor Stuttard after the meeting with BNDES President Luciano Coutinho.

Lord Mayor Stuttard, (who will meet President Lula later this week) said: “Resource-rich Brazil has transformed itself over the last few years into a politically and economically stable environment, with low inflation, good GDP growth and large foreign exchange reserves. I am most impressed by what I have seen and heard in this huge country. It is a country that is as large as continental USA and has a future as big.”

“Even the recent turmoil in global markets has not had a dramatic effect on Brazil – and this has been noted by the global business community. Investment grade status is on its way and the falling cost of money will bring further investment flows.”

Lord Mayor Stuttard welcomed indications from the Brazilian investment and energy community that climate change (Clean Development) projects under the Kyoto Protocol would be increased beyond the country’s current low global share of only 6%. Together with the Amazon rail and other projects, this demonstrates the importance Brazil attaches to sustainable development and protecting the world’s climate.

Ends

Notes to the Editor
Working with the FCO, UKTI and Treasury, Lord Mayor John Stuttard promotes all UK-based financial services, visiting some 25 countries with business delegations. He travels with the rank of Cabinet Minister while overseas with access for himself and his team to leading ministers, officials and business circles. He is the elected head of the City of London Corporation which provides local government services for the Square Mile, the financial and commercial heart of Britain and is committed to maintaining and enhancing the status of the business City as the world's leading international financial and business centre through its policies and services. Its responsibilities also extend far beyond the City boundaries and include management of the Barbican Centre, Central Criminal Court at the Old Bailey, Epping Forest, Hampstead Heath, three wholesale food markets, as well as acting as the London Port Health Authority.

Press contact (Lord Mayor): Greg Williams +44 (0) 7889 167 205, greg.williams@cityoflondon.gov.uk
Press contact (Brazil issues): Nadia Nightingale +55 21 2555 9624, nadia.nightingale@fco.gov.uk

 


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