PUBLIC-PRIVATE
PARTNERSHIP PROGRAM OF
THE STATE OF BAHIA
Albérico Mascarenhas
Secretary of Finance of State of Bahia
Federation of Industry of State of São Paulo – FIESP
May/19, 2005
Characteristics of Bahia’s PPP Law
PPP-Bahia
Essential Concerns
Creation of a benchmark to attract private
investments, aiming at
strengthening the
State infrastructure.
To prevent the use of such benchmark to
defraud the fiscal strictness and imbalance
the State finance.
To explore supplementary services to provide
the project with better financial sustainability
and to reduce the tariff impact.
Fiscal Accountability
Limits for annual expenditure
Expenses must not exceed 5% of the Current
Net Income.
In the Federal Law, 1% of the CNI ended by
prevailing.
The State is prevented to enter into new
agreements if the established limit is
exceeded.
PPP-Bahia
Concepts, principles and transparency
Minimum amount: The monetary expression
of an amount higher than R$ 20 million
prevailed.
Total access to data and reports, including for
any reviews.
Inclusion in the Quadrimester Report on
Fiscal Management and submitted in Public
Hearing;
Essential Clauses to PPP’s Agreements
Essential clauses
Sharing with the public administration of
economic profits, resulting from the risk
reduction of partnership financing, and of
ascertained productive gains when performing
the agreement;
Pledged installment withholding, in the last
years of the agreement, to ensure the
wholeness of the enterprise, which will be
released after the agreement termination.
PPP/Bahia - Guarantees
Creditor’s Protection
Pledged
and
insurance;
personal
guarantee
or
Issuance of performance certificates directly
and in favor of the project financing
institution;
Financing entity allowed to receive
payments trough the obligor fund.
PPP/Bahia - Guarantees
Creditor’s Protection
Obligor Fund.
Association with State Resources, including
the Royalties’ and CIDE’s, other than taxes.
The contractor may collect receivables of
the contracting party from third parties,
other than taxes.
PPP/Bahia - Guarantees
Obligor Fund
Creation of the Obligor Fund for the PPP of the
State of Bahia – FAGE Bahia.
Guarantee with a contribution up to 30% of the
annual obligations paid by treasury resources;
Sources:
‣ 20% from the Royalties, while the 30% is not reached
and up to 20% after exceeding the ceiling or if equal
to it;
‣ 20% from CIDE (idem Royalties);
‣ other budgeting resources and additional credits;
‣ The Fund’s financial applications;
‣ Internal and external credit operations;
‣ donations, allowances, contributions and legacies.
PPP/Bahia - Control and Management
Management Council - Composition
Management Council of the PPP Program:
I - the Finance Secretary (Chairman);
II - the Planning Secretary (Deputy Chairman);
III - the Administration Secretary;
IV - the Government Secretary;
V - the State Attorney General;
VI - up 2 members, at the Governor free discretion.
State Secretary Head Officers, with direct interest
on a certain partnership;
PPP/Bahia - Control and Management
Executive Department and Regulatory Agencies
Executive Secretary for the Management
Council, associated with the Finance Secretariat.
Regulatory Agency Roles (AGERBA).
PPP-Bahia
Priority Areas
Education, health and social welfare;
Public transports (roadways, railways, ports and
airports);
Sanitation;
Safety,
defense,
justice
and
imprisonment
system;
Science,
research
and
technology,
including
information technology;
Agribusiness
(irrigated
agriculture
and
agricultural-industrialization);
Other public areas of social or economic interest.
Major Projects
PPP-Bahia
Major Projects to be Performed
Ocean Outfall
Roadways and Railways
Prisons
Ocean Outfall
Implementation of New Outfall and
Supplementary Works
 A second Ocean
Outfall
 Customer’s assistance
- Salvador
- Lauro de Freitas
- Existing Basin
Densifications
TITLE
BASIN LIMITS
SYSTEMS’ LIMITS
LIMITS BETWEEN OUTPOURINGS
MUNICIPAL DISTRICT LIMITS
RISING STATION
PREVIOUS CONDITIONING STATION
INTERCEPTOR
PRESSURE PIPES
Implemented basins that contribute to the Rio
Vermelho Outfall
Implemented basins currently contributing
(provisional) to the Rio Vermelho Outfall and
final contribution to the Jaguaribe Outfall
Basins planned to be implemented in the second
phase which will contribute to the Jaguaribe
Outfall
Implementation of New Outfall and
Supplementary Works
• Work Characteristics
 Land outfall:
•
1,509 m of extension and
• 1600 mm of diameter
 Previous Conditioning
Station (ECP) to a flow of
3.m3/s
 Ocean Outfall:
•
3,648 m of extension
•
5,9 m3/s capacity.
 Investment: R$ 260
million
TITLE
BASIN LIMITS
SYSTEMS’ LIMITS
LIMITS BETWEEN OUTPOURINGS
MUNICIPAL DISTRICT LIMITS
RISING STATION
PREVIOUS CONDITIONING STATION
INTERCEPTOR
PRESSURE PIPES
OCEAN OUTFALL
Implemented basins that contribute to the Rio
Vermelho Outfall
Implemented basins currently contributing
(provisional) to the Rio Vermelho Outfall and
final contribution to the Jaguaribe Outfall
Basins planned to be implemented in the
second phase which will contribute to the
Jaguaribe Outfall
(CONTINUED)
Enterprise’s Benefits
It will serve a population of approximately
1,900,000 inhabitants.
Implementation of the Jaguaribe system will
provide
sanitation
services
to
an
area
of
approximately 20,000 hectares.
Improvement of the users’ life quality and reduction
of expenditure on the public health sector.
Possibility to fulfill all basin sanitation depletion
with significant densification, in Salvador and its
metropolitan region, without damages to tourism major economic activity and attraction of such cities,
as well as preventing the spreading diseases
transmitted by water.
Other Depletion Systems
OPPORTUNITY PERSPECTIVES WITHIN PUBLIC-PRIVATE PARTNERSHIPS (PPP)
SANITATION DEPLETION
LOCATION
URBAN
POPULATION
2004
CURRENT ASSISTANCE (% )
WATER
SEWER
PERSPECTIVE FOR ASSISTANCE
TARGET OF 80% IN DEPLETION
ASSISTED
INVETIMENTO
POPULATION
(R$x 1.000) (*)
Camaçari
137.200
99
20
109.800
22.200,00
Eunápolis
93.500
95
5
74.800
19.000,00
Feira de Santana
457.600
95
35
366.000
55.600,00
Ilhéus
168.800
97
43
135.000
17.000,00
Teixeira de Freitas
118.800
90
6
95.000
23.700,00
Vitória da Conquista
240.900
98
45
193.000
22.800,00
TOTAL
1.216.800
973.600
160.300,00
Roadways and Railways
BA-093 Duplication
- 23.3 km and Repair Services of de 81.7 km
Location:
Road Junction with BR 324 (RMS)
Entre Rios
Feira de
Santana
BR 101 road junction (Entre Rios).
Extension:
Alagoinhas
Araçás
Works:
Catu
Pojuca
Candeias
105 km
–Duplication: Road Junction of the
BR 324 -Dias D'Ávila – 23.3 km;
Camaçari
Simões Filho
–Repair Services: from Dias D'Ávila
- BR 101 Road Junction BR 101 –
81.7 km.
SALVADOR
Investment:
R$ 144 million.
HIGHWAY AISLE IBOTIRAMA - ITABUNA
Location:
Ibotirama – Bom Jesus da Lapa – Brumado –
Vitória de Conquista – Itabuna
Extension:
738 km.
Works:
Recovery and Suitability
Estimate Investment: R$ 317 million
Prisons
Penitentiary System
Place Requirements in the Imprisonment System
A) Imprisonment System Place Shortage
1,367
B) Prisoners in District Prisons
4,500
C) Place Shortage (A +B)
5,867
D) Intended places included in ongoing work
2,026
E) New work requirements (C – E)
3,841
Penitentiary System
1 prison unit in the capital
Imprisonment places
Construction costs
Unit annual operation
1.000
R$ 25,2 milhões
R$ 11,5 milhões
6 inland units (1)
Imprisonment places
Construction costs
Unit annual operation
3.500
R$ 101,0 milhões
R$ 43,2 milhões
Municipalities:Itaberaba, Vitória da Conquista,
Seabra, Irecê, Santo Antônio de Jesus and
Eunápolis.
(1)
Institutional Environment Favorable
For Investment
Favorable Institutional Environment
for Investment
PPP/Bahia – Economic Growth
GDP BRAZIL X GDP BAHIA
YEAR
1999
2000
2001
2002
2003
2004
AVERAGE
Brazil
0,8
4,4
1,3
1,9
0,5
4,9
2,3
Bahia
2,2
3,9
1,0
1,2
3,0
9,9
3,5
PPP/Bahia – Fiscal Indicators
Fiscal Responsibility Law
Personnel and Duties
Limits
Maximum
Prudential
2004/
Accomplished
Personnel
60% RCL
57% RCL
48,3% RCL
Public Debt
Evolution
Legal
Limit
2002
2003
2004
Dívida/RCL
2,00
times
1,82
times
1,63
times
1,42
times
* RCL = Net Revenue
Primary Surplus
981.233
1.000.000
719.094
800.000
642.037
600.000
400.000
170.920
200.000
0
2001
2002
2003
2004
Evolution of Public Debt
18 ,5 18 ,9
18 ,8
17,1 16 ,7
16 ,2 16 ,0
15,6
A verage Term
6 ,1 6 ,0 6 ,3 6 ,0
1997
1998
1999
2000
5,9 5,7 5,6 5,7
2001
2002
2003
2004
A verage Interest Rate
www.sefaz.ba.gov.br
BANNER
Albércio Mascarenhas
Secretary of Finance of State of Bahia
e-mail: [email protected]
Internet: www.bahia.ba.gov.br
Internet: www.sefaz.ba.gov.br
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