Iberdrola will maintain its commitment to Brazil during Lula's term in office

The chairman of Iberdrola, Ignacio Sánchez Galán, expressed this Wednesday the commitment of the Spanish multinational, during the administration of President Luiz Inácio Lula da Silva, to its investments in Brazil, where it is building more than 8,000 kilometres" of electricity transmission and distribution lines. 

Galán, who travelled to northeastern Brazil for the inauguration of a large wind and solar farm complex, said the company is investing about 10 billion reais (about $1.9 billion) annually in Brazil and expects to maintain this pace until 2030. 

"We are investing at a rate of 10 billion reais a year. The plan until 2025 contemplates investments of between 30 and 35 billion reais (...) Very probably the investment rhythm will continue in similar conditions until 2030", Galán said in statements to journalists before the inauguration. 

The Spanish executive considered that the business environment in Brazil is conducive to investment, so the company "will continue its commitment to the country". He stressed that "Brazil has very solid institutions" and independent institutions, and pointed out that Lula, in his first two terms in office (2003-2010), "was a great promoter of the autonomy" of the Central Bank and regulatory bodies. 

Galán also explained that on Tuesday he held a meeting with the Minister of Finance, Fernando Haddad, who explained that "his intention is to try by all means to create a climate of stability, of predictability". 

At that meeting, they discussed the tax reform that Lula's government is trying to promote, which, according to the minister of the main economic portfolio, "seeks not to collect more, but to collect better". 

The tax reform aims to "reorganise the tax situation, to make things more homogeneous, more understandable, which is good for companies". 

"We are willing to pay our fair share," said Galán, clarifying that he does not know the details of the reform and does not know if it will have an impact on the accounts of Neoenergia, Iberdrola's Brazilian subsidiary. 

Among the company's upcoming investments, Galán said it will participate in two auctions for the construction of transmission lines to be held in June and October. 

On the situation in Mexico, the second destination for the Spanish company's investments in Latin America, Galán explained that Iberdrola has halted new investments due to the political situation. 

"In Mexico, with the last government and the current government, it is not as attractive to investment as it was in the past (...) In the case of Mexico, investment has stopped, but our commitment to Mexico remains exactly the same as in the last 20 years", he explained.