At a conference of Mercosur trade group leaders on Thursday, four investment banks declared that they will contribute $10 billion towards infrastructure projects that will improve connectivity throughout South America. These projects include funding for ports, airports, roads, trains, and electricity transmission.
In Rio de Janeiro, the “Routes for South American Integration” program was introduced. The host country, Brazil, presented a plan that included over 120 projects, many of which were located in the northern part of the country, which borders Suriname, Venezuela, Guyana, and French Guyana.
The money will come from the Inter-American Development Bank ($3.4 billion), the Development Bank of the Americas ($3 billion), the Brazilian Development Bank ($3 billion), and FONPLATA ($600m), a bank that is held by Uruguay, Argentina, Bolivia, Brazil, Paraguay, and Paraguay.
The president of the Development Bank of Brazil, Aloizio Mercadante, stated that his organization will fund projects “from the border within Brazil” and that the other banks will fund projects “from the border to the outside.”
Mercadante declared, “It is the largest fund ever built for Mercosur in its history as well as for South American integration.”
The new infrastructure is intended to “significantly reduce the time of transportation of merchandise between Brazil and Asia,” according to a statement from Brazil’s Planning and Budget Ministry.
The last three decades have seen the failure of such schemes for South American integration, but according to Brazil’s Planning Minister, Simone Tebet, things will be different this time.
“The goal of regional integration is now developed enough to be realized. That came about following extensive discussion and conversation amongst leaders, according to Tebet.
There are five major projects in the integration plan.
Amapa and Roraima in northern Brazil will have improved infrastructure as part of the Guyana Islands route project, which will also strengthen connections to Guyana, French Guyana, Suriname, and Venezuela.
The Manta-Manaus route connects Colombia, Peru, and Ecuador by river and passes through the Brazilian state of Amazonas as well as portions of the states of Roraima, Para, and Amapa.
The Rondon Quadrant, which links Bolivia and Peru, goes through the Brazilian states of Acre and Rondonia as well as the soybean-rich region of Mato Grosso State.
The Capricorn route connects Santa Catarina, Parana, and Mato Grosso do Sul with Paraguay, Argentina, and Chile via many routes.
Additionally, the Porto Alegre-Coquimbo line improves connectivity between the states of Argentina, Uruguay, and Chile and the Brazilian state of Rio Grande do Sul.
Brazil, Argentina, Paraguay, and Uruguay are the complete members of Mercosur. As of right now, Venezuela is barred from the trade association. Bolivia is now applying to join it.
