The agreement was signed by Frederico Robalinho de Barros and Jesus Ferreira Filho of Brazil Energy Power Corporation and MPE Group, the two companies representing the Brazilian consortium, and Abdullah Hashwani of Hashwani & Son Inc.
MPE Group is a billion US dollars plus company involved in turn-key projects in various sectors including petroleum, steel, ports, engineering and agribusiness in Brazil and several countries.
President Musharraf arrived here late on Saturday night at the start of a three-day visit to Brazil, expressing hope that his talks with Brazilian leaders would help forge Pakistan's strong political and economic ties with the important Latin American country.
Talking to PTV on his arrival at Rio de Janeiro, the President said, "I am probably the first Pakistani leader coming here, therefore I see a very bright future in economic, commercial and trade ties between Pakistan and Latin American countries and Brazil in particular.
At the Galeao airbase, the President was received warmly by acting Governor of Rio de Janeiro in a rare gesture of goodwill as normally the visiting leaders are received by protocol officials.
Musharraf's visit has generated a lot of interest as was reflected in the coverage of his arrival by leading media networks.
In Brasilia, the President will hold talks with his Brazilian counterpart Lula De Silva with a focus on augmenting trade and economic co-operation including joint ventures in promising areas.
The two countries are likely to sign agreements on boosting bilateral ties.
He will also interact with the Brazilian entrepreneurs to highlight the vast potential for bilateral trade and inform the local business leaders about Pakistan's recent economic turnaround.
Besides, Commerce and Privatisation Ministers and a strong delegation of businessmen accompanying the President will also hold talks with their counterparts to identify areas offering potential trade opportunities.
The weeklong visit of President Musharraf to the region will also take him to Argentina and Mexico.