Data: 3 a 10 de novembro de 2008 Lisboa, Londres, Madri e Frankfurt CONCESSIONS OF RAILROADS CLEILSON QUEIROZ VALEC-ENGENHARIA,CONSTRUÇÕES E FERROVIAS S.A. NORTH - SOUTH RAILROAD (EF 151) THE SUB-CONCESSION OF THE SECTION PALMAS (TO) – ESTRELA D’OESTE (SP) WEST - EAST INTEGRATION RAILROAD(EF 334) THE SUB-CONCESSION OF THE SECTION FIGUEIRÓPOLIS (TO) – ILHÉUS (BA) VALEC - Engenharia, Construções e Ferrovias S.A. • Public company of the Ministry of Transport . • Purpose: construction and operation of Brazilian railway infrastructure . RAILWAY CONCESSIONS OF VALEC BELÉM EF 151 BOQUEIRÃO DA ESPERANÇA FIGUEIRÓPOLIS EF 334 ILHÉUS EF 234 PORTO MURTINHO EF 267 PANORAMA LITORAL DO RIO DE JANEIRO NORTH - SOUTH RAILROAD : CURRENT STAGE OF CONSTRUCTION BELEM DESIGNED ACAILANDIA CONCLUDED COLINAS DO TOCANTINS UNDER CONSTRUCTION ANAPOLIS DESIGNED ESTRELA D`OESTE NORTH - SOUTH RAILROAD : SUB-CONCESSION SECTION Belém SÃO LUIS Palmas Estrela D’Oeste ESTIMATED INVESTMENT R$ 3,5 bilhões TOTAL EXTENSION OF THE SECTION TO BE GRANTED 2,600 MILES RIO DE JANEIRO SANTOS WEST- EAST INTEGRATION RAILROAD: SUB-CONCESSION SECTION Belém SÃO LUÍS ESTIMATED INVESTMENT R$ 3 BILHÕES FIGUEIRÓPOLIS ILHEUS TOTAL EXTENSION OF THE SECTION TO BE GRANTED 2,384 MILES AREA OF INFLUENCE OF THE NORTH - SOUTH RAILROAD: BRAZILIAN SAVANA EXTENSION OF SAVANA: 1,8 milhão km2 PRODUCTIVE POTENTIAL OF SUB-CONCESSIONS AREA OF INFLUENCE Soybeans and derivatives Fertilizer Soybean meal Alcohol Soybean oil Derived from petroleum Maize Fertilizer Containers Iron ore Sugar Bauxite Cotton ESTIMATED DEMAND FOR TRANSPORT (TON.MIL) RAILROAD GENERAL CARGO ORE TOTAL EF 151 115 100 215 EF 334 20 50 70 THE SUB-CONCESSION PROCESS Term of sub-concession: 30 years Provides resources: fully paid for the VALEC, as stipulated in the contract schedule and the announcement of the sub-concession. THE LEGAL FRAMEWORK OF THE SUB-CONCESSION PROCESS Law nº 8.987 ( February 13, 1995) Law nº. 9.074, (June 7, 1995 ) Article 175 of the Federal Constitution Law nº 8.666 ( June 21, 1993) Law nº 9.648 ( May 27, 1998) Announcement of the sub-concession, and annex REQUISITES FOR THE PARTICIPATION OF COMPANIES The participation of individual Brazilian and Foreign Companies is permitted. The participation of consortiums between Brazilian and / or Foreign Companies in one Consortium is also permitted. Acquisition of the Bidding Documents. The presentation of a commitment to form a consortium indicating the participation of each member of the consortium and the leader. STAGES OF THE BIDDING PROCESS FIRST STAGE OF THE BIDDING PROCESS – PRE-QUALIFICATION (Special Bidding Committee of VALEC) Legal Qualification Technical Qualification Economic and Financial Qualification Clean Fiscal Standing STAGES OF THE BIDDING PROCESS Delivery of the BOVESPA’s instructions to the pre-qualified companies STAGES OF THE BIDDING PROCESS SECOND STAGE OF THE BIDDING PROCESS – AUCTION IN THE BOVESPA (The Sao Paulo Stock Exchange) Deposit of the Bid Guarantee (two days prior to the Auction) Proceedings in accordance with the BOVESPA Manual Adjudication of the result based on the Highest Payment offered for the grant of the Concession Disqualification of Proposals below the Minimum Value established for the grant of the Concession Confirmation of the Winning Bid by the auctioneer Publication of the Result of the Auction indicating the winning company Creating a Specific Purpose Society for signing the contract SUB CONCESSION PAYMENT NORTH - SOUTH RAILROAD ( EF 151) 1st installment - 50% of the winning bid of the auction upon financial settlement - the signing of the sub concession - in conclusion of construction of the of the section Palmas (TO) – Anápolis (GO), scheduled for December 2010. 2nd installment - 25% of the winning bid in conclusion of construction of the Ouro Verde de Goias (GO) - Rio Verde (GO), scheduled for July 2011. 3rd installment - 25% of the winning bid in the auction in conclusion of construction of the section Rio Verde (GO) – Estrela D’Oeste (SP), scheduled for December 2011. SUB CONCESSION PAYMENT WEST- EAST INTEGRATION RAILROAD ( EF 334) 1st installment - 40% of the winning bid of the auction upon financial settlement - the signing of the sub concession - in conclusion of construction of the section Ilhéus (BA) - Caetité (BA), scheduled for July 2011. 2nd Tranche - 30% of the winning bid in conclusion of construction of the section Caetité (BA) - Correntina / Barriers (BA), scheduled for July 2012. 3rd installment - 30% of the winning bid in the auction in conclusion of construction of the section Figueirópolis (TO) Correntina / Barreiras (BA), scheduled for December 2012. VALEC – Engenharia, Construções e Ferrovias S.A. SAN – Quadra 3 – Sala 1100 Edifício Núcleo dos Transportes Brasília – DF www.valec.gov.br Data: 3 a 10 de novembro de 2008 Lisboa, Londres, Madri e Frankfurt THANKS !