Brazil News
| CARACAS – On Friday, in a show of solidarity with Hugo Chavez, President Rousseff defended Venezuelan partnership in the construction of a major refinery in Pernambuco. In her first official visit to Venezuela, Dilma was received by a Venezuelan leader ailing from cancer treatments in Cuba, and who has been unable to raise the bank loans necessary for his country's participation in the Abreu e Lima refinery project in the north-eastern Brazilian state of Pernambuco.
Dilma and Hugo (photo: terra.com.br)
Dilma, who arrived in Caracas Thursday to attend a bilateral meeting with President Hugo Chavez and for the creation of the Community of Latin America and Caribbean (CELAC), said that the project is important for both countries. Her statement of support was seen as a message for the Brazilian oil company Petrobras, which is resisting having PDVSA, the Venezuelan state oil company as a partner. Petrobras has grown increasingly frustrated with the delays caused by Venezuela's inability to secure financial backing from the banks.
The Brazilian oil company has already secured its share of the financing—some R$10 billion reals (about $5.6 billion USD)--from the Brazilian national development bank. To the consternation of Petrobras, the Venezuelans have repeatedly delayed coming up with financing, and just this week won another 60 day reprieve from Brazil. They now have until 30 January 2012.
Brazil's ambassador in Venezuela, Jose Antonio Carcondes de Carvalho, said Brazil's neighbor is working with a pool of banks for the guarantee. For him, the delay in allocation of resources is typical of this type of business.
“It is important to take into account the interest expressed by the (Brazilian) president,” he told O Globo, reafirming the political commitment to the project. “They (the Venezuelans) are seeking to minimize their costs and identifying who can provide the guarantees. Do not forget that there was turmoil in the banking world since Chavez was in Brazil in June this year,” the ambassador went on.
Read also: More Articles from Brazil Dispatch
Brazilian online news source for this article: O Globo/terra.com.br
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