"LUCIANA BOTAFOGO: 'ENERGY INTEGRATION is feasible and also necessary'
Vesna Marinkovic U.
If achieved, it has the potential to provide economic, financial, social, and environmental benefits to the countries in the region. However, there are still significant challenges that we have not overcome in South America, says the executive of Fonplata.
1Luciana Botafogo has been elected as the Executive President of FONPLATA until 2028. What are the priorities of your management?
I took over the Presidency of the Bank in a challenging moment in the region as a result of the pandemic that brought an economic crisis, increased poverty, inequality, and unemployment. This scenario coincides with the environmental crisis facing the world. At FONPLATA, we are actively committed to supporting our member countries in overcoming these challenges by financing various projects. Our Development Bank is a solid, agile, partner-oriented financial institution integrated into the region, with a clear focus on the well-being and quality of life of the people. We will continue to consolidate these attributes, expanding our capabilities and reach.
One of the main priorities defined in my management is related to reducing inequalities and gender gaps in the region.
The current Executive President of FONPLATA - Development Bank, has over 25 years of experience in Latin America and the Caribbean preparing and supervising economic and social development projects in the public and private sectors with an emphasis on innovation, competitiveness, economic integration, and sustainability. She was a sector specialist at the Inter-American Development Bank (IDB) from 2006 to 2018. Previously, she served as International Advisor to the Presidency of SEBRAE Nacional (Service to Support SMEs in Brazil - National Directorate) for over 10 years. She holds a Master's degree in Project Management from George Washington University (United States) and a Bachelor's degree in Humanities from the University of Maryland (United States). She also has a Postgraduate Certificate in Foreign Trade from the Don Cabral Foundation (Brazil).
2What projects is FONPLATA supporting among member countries?strong>
FONPLATA's strategic niche corresponds to medium to small-scale projects (under USD 70 million), which are sometimes complementary to financing from other organizations. Projects in border areas that have an impact on more than one member country are prioritized to promote the development of these areas and improve the integration of regional economies into the global context. The main sectors we support are infrastructure, socio-environmental development, and the economic-productive sector.
3Do you consider regional integration a feasible project in the region?
I believe that integration is not only possible but necessary. In this sense, FONPLATA seeks to position itself as the Bank of MERCOSUR and become the financial instrument of this commercial/political bloc.
"... regional or bilateral agreements must recognize the different regulations, laws, regulatory frameworks, and even policies between countries to achieve effective bilateral and regional integration."
4Do you believe regional energy integration is possible or only bilateral in South America?
I think energy integration is feasible and also necessary. If achieved, it has the potential to provide economic, financial, social, and environmental benefits to the countries in the region. However, there are still significant challenges that we have not overcome in South America, such as planning, financial structuring, demand/supply organization, as well as different legal frameworks. The latter implies that regional or bilateral agreements must recognize the different regulations, laws, regulatory frameworks, and even policies between countries to achieve effective bilateral and regional integration.
5Do regional energy integration projects have sufficient financing to be viable?
Multilateral development organizations and international cooperation agencies work coordinatedly with states for this purpose. We provide technical support and recently accompany countries to access climate funds for the financing of their regional energy integration initiatives. Although the requirements are still many and significant, once there is political willingness to coordinate, there are success stories such as the projects developed by ANDE Paraguay that allow the sale of electricity to markets in Brazil and Argentina. FONPLATA finances ANDE in transmission lines that contribute to this mission.
FONPLATA seeks to position itself as the Bank of MERCOSUR and become the financial instrument of this bloc..."
