2011 HIGHLIGHTS – MAIN FACTS
East Monorail Express
Barra Subway
Via Mangue
The project is the first of its kind
in Brazil and the world´s largest in
passenger capacity. It is expected
to transport up to half million people
per day between the districts of Vila
Prudente and CidadeTiradentes, in
São Paulo’s state capital.
Line 4 of Rio de Janeiro’s subway
will be approximately 16 kilometers
long and will be delivered in time for
the Olympic Games. It will have six
stations along the route between
the district of Barra da Tijuca and the
city’s south side.
The project, in northeast Brazil,
comprises the construction of
roads over the mangroves in order
to improve traffic in the south side
of Recife. The project, which has
sensitive environmental and social
characteristics, will be 4.7 kilometers
long and includes bike lanes.
International
Comperj
Oil and Gas
Expansion of business in Angola
and the Dominican Republic and
structuring of the Argentinean
operation. In Peru, the Group is for
the first time part of a concession
outside Brazil, in a section of the
Interoceânica Sur highway.
The QGGI Consortium, led by CQG,
is responsible for the construction of
two Hydrotreater Units (HDTs) and
their respective power substations.
These units will remove sulfur from
the fuel, making it less pollutant.
Net income of the oil and gas
services segment increased by
70.5%. In the same period, the
company expanded its operational
fleet by 50%, totaling nine onshore
drilling rigs and six offshore
drilling rigs.
1
Exploration and Production
Wind Power
Biomass Energy
QGEP made a public offer of shares
in February 2011 in what was considered the largest IPO of the year,
raising a total of BRL 1.5 billion, and
currently operating with an estimated market cap of BRL 4 billion. It is
the first Brazilian operator in ultradeep waters after the acquisition of
the BS-4 block.
Part of Queiroz Galvão Energias
Renováveis (Renewable Energies), a
company born as one of the largest
in the segment in Brazil, with assets
of 810 megawatts of total capacity.
Pilot project in the state of Maranhão
for the production of energy using
biomass from the waste of planted
forests or short-cycle crops.
Agribusiness
São Paulo Urban Cleaning
Sanitation
The verticalization process of Queiroz
Galvão Alimentos (Foods) sealed
its transformation from agriculture
to an agribusiness activity with the
production of fruit juice concentrates
to supply national and international
demand.
The company Vital Engenharia
Ambiental participates in the
consortium that operates 50% of
the urban cleaning in the city of
São Paulo, providing services to 13
administrative regions. Approximately
3,500 kilometers of public streets are
swept every day, and other special
services are also provided, such as
the cleaning of monuments.
The company Saneamento
Ambiental Águas do Brasil (Saab)
was successful in the bid for sewage
treatment and collection in the west
side of the city of Rio de Janeiro,
benefiting close to 1.8 million people.
1
2011 ANNUAL REPORT
QUEIROZ GALVÃO GROUP
PRESENTATION
03
CONSOLIDATED FINANCIAL INDICATORS
04
MESSAGE FROM THE BOARD OF DIRECTORS
06
THE GROUP
Profile 12
Values 13
Corporate Structure 14
Governance Structure 15
BUSINESS AREAS
Construction Brazil 16
Construction International 24
Shareholding and Concessions 26
Environmental Engineering 34
Real Estate Development 40
Oil and Gas 46
Exploration and Production 52
Business Development 58
RESPONSIBLE PROJECTS
Social Integration 66
Environmental Initiatives 70
Cultural Actions 74
CREDITS AND CONTACT INFORMATION
2 Queiroz Galvão Group – 2011 Annual Report
76
PRESENTATION
This 2011 report brings the consolidated information about
and disseminate guidelines for the creation of sustainability
the economic performance and the main operational
reports, which are voluntarily adopted by major companies in
highlights of Queiroz Galvão Group business areas, including
the world.
the economic, environmental, and social dimensions to all its
stakeholders and the public in general. The period comprises
The scope used to collect information on the performance
the initiatives developed between January 1 and December
and sector indicators initially corresponds to Construtora
31, 2011.
Queiroz Galvão (Construction) – the largest business area
of the Group in terms of revenue – and to Queiroz Galvão
This is the first company report that follows the principles
Exploração e Produção (Exploration and Production - QGEP)
of the Global Reporting Initiative (GRI), an international
– the first publicly traded company of the organization.
non-governmental organization, with headquarters in
The information is available on the website:
Amsterdam, Holland, whose mission is to globally develop
www.queirozgalvao.com
Laying of beams in the worksite of the East Monorail Express, São Paulo (SP).
3
CONSOLIDATED FINANCIAL INDICATORS
EBITDA
REVENUE
(BRL million)
2008
2009
6,955
2010
2011
(BRL million)
2008
2009
839
865
7,404
2010
2011
968
6,330
5,526
218
NET CURRENT ASSETS
TOTAL ASSETS
(BRL million)
2008
2009
2010
2011
(BRL million)
2008
2009
2010
2011
10,648
9,091
7,045
2,261
5,952
1,981
1,468
NUMBER OF EMPLOYEES
2008
2009
35,000
2010
37,000
30,000
4 Queiroz Galvão Group – 2011 Annual Report
2011
40,000
1,584
REVENUE BY
BUSINESS AREA
61%
%
10
10%
9%
4%
6%
Construction (61%)
Shareholding and Concessions (10%)
Environmental Engineering (10%)
Real Estate Development (9%)
Business Development (6%)
Exploration and Production (4%)
5
MESSAGE FROM THE
BOARD OF DIRECTORS
In addition to the constant search for
reduction in the growth rate and the increase of
efficiency in all operations, our decisions
systemic risks.
have been guided by a long term view that
supports development in the countries
Brazil started 2011 fueled by a solid growth of the GDP in
where we operate
2010 and inflation pressures caused by the strengthening
of the domestic market, especially due to the large
The effects of the 2008 global economic downturn, contrary
availability of credit, which reflected in the prices of goods
to projections by analysts, were not attenuated in 2011.
and services. At the same time, the transition of state and
The signs of aggravation of the situation persisted, market
federal governments also brought a change in pace, inherent
recovery did not occur and stagnation continued dominating
to the first year of administration, mainly in the infrastructure
Europe. In the United States, the slight improvement in
sector. In the second half of the year, the credit restriction
some indicators was not enough to drive a consistent
measures adopted to offset the pressure of inflation and the
recovery. Consequences of the downturn also ended up
continuous international instability caused a reduction in the
reaching developing countries. Studies by the International
level of economic activity.
Monetary Fund about the economic outlook pointed to an
increase in the level of activities, albeit uneven: stronger
For Queiroz Galvão Group, these factors combined also
in developing economies and less intense in advanced
created impacts, which are reflected both in the revenue and
economies. Throughout the year, however, the situation
in the EBITDA calculated at the end of the fiscal year. There
became increasingly difficult with the identification of
was also another decisive element:
1
Maurício José de
Queiroz Galvão
2 Marcos de
Queiroz Galvão
3
Fernando de
Queiroz Galvão
4
Ricardo de
Queiroz Galvão
5
Carlos de
Queiroz Galvão
6
Roberto de
Queiroz Galvão
7
Antônio Augusto de
Queiroz Galvão
1
6 6 Queiroz Galvão Group – 2011 Annual Report
2
3
the performance of Estaleiro Atlântico Sul (Shipyard) which
P-55, P-58, P-62 and P-63, which will have a production
faced the challenge to be constructed at the same time that
capacity of up to 720,000 barrels of oil per day, a significant
it built its first large ship. The learning curve, a characteristic
number, equivalent to more than 30% of the current national
of the shipbuilding industry recovery process, contributed
production, estimated in 2 million barrels per day.
to negatively affect the result determined. This was a phase
According to data from the National Petroleum, Natural
in which the great effort made was to overcome obstacles,
Gas and Bio-fuel Agency (ANP), demand for investments
such as the gap in specialized labor and the development of
for the pre-salt region should exceed US$ 400 billion, in
a supply chain for adequate inputs, mainly to comply with
materials, equipment, systems and services as of 2020.
the national content policy. However, even in this adverse
Thus, the companies established in Brazil will have priority
environment, the shipyard delivered to Petrobras the largest
in the supply of goods and services for the growing oil
semi-submersible platform hull ever built in Brazil, the so-
and gas activities. In this scenario, once again, one of the
called lowerhull, for P-55, as well as the João Cândido oil
main characteristics of the Group stand out: the strong
tanker delivered to Transpetro, which successfully passed all
and synergetic performance in the entire production chain
its sea trials and obtained all the most relevant certifications.
from the exploration and production up to the building
of refineries, and including operation of rigs and the
In addition to relying on Estaleiro Atlântico Sul, producing
construction of oil tankers and platforms.
oil tankers, drill ships and offshore platforms to support
the oil industry, the Group also has the affiliated company
Quip S.A., responsible for the construction of platforms
4
5
6
7
7
Considering these great perspectives for oil exploration in
problems of the city and also prepare it to host the Olympic
the country, we acquired a stake in the BS-4 and BM-S-8
Games in 2016. In the state of Pernambuco, the Via Mangue
blocks through QGEP, the first publicly held company of the
project consists of the development of routes over the
Group. Both blocks are located in a premium area of the
mangroves to improve traffic in the south side of Recife.
Brazilian pre-salt region in the Santos Basin.
In the international market, we were awarded a contract in
In the Oil and Gas Services segment we presented the
the Dominican Republic with the National Institute of Water
largest operational and financial growth in Brazil since
Resources (INDRHI), responsible for the execution of the
the beginning of our operations in 1980. It is important to
work and the supply of all goods and services necessary
mention the beginning of the operation of five new drilling
for the conclusion of the Azua II Agricultural Development
rigs: three onshore, QG-V, QG-VIII and QG-IX; and two
Project; in Argentina, we obtained the National Register for
offshore rigs for ultra-deep waters, Lone Star and Alpha
Constructors of Public Work; and in Peru and Venezuela,
Star, the latter delivered to Petrobras before the deadline
we maintained a consistent performance. In Angola,
established.
we expanded the business by signing contracts for the
construction of new roadways. Africa and the Middle East
The excellence in drilling services and the installation of oil
remain in perspective, within a market expansion strategy.
wells, as well as the exploratory campaigns in the pre-salt
Thus, we once again demonstrate our commitment to the
area give us the confidence that the outlook for 2012 and the
development of all the countries in which we operate.
coming years will turn into very positive results for the
entire Group.
With focus on the trends that point to an increasingly
sustainable development, we direct investments to the
In the Construction segment, the Group had once again the
production of renewable energies – wind power
opportunity to present its credentials in the area of solutions
and biomass.
for urban mobility – one of the major issues of large cities
that interferes directly in the quality of life of millions
In this line, we consolidate significant results through
of people.
the incorporation of Queiroz Galvão Energias Renováveis
(QGER), a company that was born among the country’s
The East Monorail Express, in São Paulo, should be
largest in its segment, with a portfolio that will generate 810
highlighted as the first project for this transportation modal
MW within the next five years. Similarly, we proceed with
in Brazil, and the one with the largest passenger capacity in
the plan to build small hydroelectric plants – PCHs, such as
the world. Barra Subway, Line 4 of Rio de Janeiro subway
the one in Mucuri, in the state of Minas Gerais.
system, is part of the initiatives that aim to tackle the traffic
8 Queiroz Galvão Group – 2011 Annual Report
Another good result achieved in 2011 was the expansion of
Queiroz Galvão Group has a strategy to concentrate
Queiroz Galvão Desenvolvimento Imobiliário (Real Estate
investments in segments that are complementary and that
Development - QGDI) in the area of construction and sale
form the basis for development: infrastructure, energy, and
of residential, commercial and leisure real estate, which
oil and gas. A good example is the decision to become a
may be confirmed both in terms of launches (31.4%) and in
relevant player in the production of cement, in partnership
terms of contracted sales (64.4%), compared to the previous
with an important Brazilian economic group. The first
year. This is a sector that continues to point to increasingly
production unit is being built in São Luís (MA), with the
promising performance in the coming years, considering
beginning of operations scheduled for the end of 2013.
the demand for housing projects and a credit policy that
facilitates the acquisition process – a scenario that becomes
The recognition for the quality services in the areas of
even more attractive given the trend of continuous reduction
engineering and heavy construction, obtained throughout
in interest rate.
almost 60 years, also enables us to participate in the
strong demand for infrastructure work which are essential
We also expanded in the Environmental Engineering sector.
for development in Brazil, Latin America, Africa, and Asia.
Vital was awarded important contracts such as the operation
These are projects that will streamline cargo transportation
of 50% of urban cleaning in the city of São Paulo (SP), which
(ports, airports, railways, roads and waterways), ensure
serves 13 administrative regions; the contract renewal for
urban sanitation and water supply, generate and transmit
the public cleaning services of Vitória and Vila Velha (ES); and
power from several sources and, above all, contribute to the
the contract for public cleaning services, destination and final
improvement in the quality of life of millions of people.
treatment of waste in Foz de Iguaçu (PR).
In addition to the constant search for efficiency and synergy
Through its affiliate company Saneamento Ambiental Águas
in all operations, our decisions have been guided by a long
do Brasil, we were successful in the bid for the collection
term view that supports transformations in the countries
and treatment of sewage of the west side of Rio de Janeiro,
where we operate – today and in decades
which will serve approximately 1.8 million people. In addition,
to come.
the recent acquisition of a stake in the company Águas
do Amazonas will allow the transfer of technology, which
We are, therefore, certain of the path taken and aware of
is essential to supply the demand for quality services for
our potential which should and will be put to service for the
a substantial part of the population of the largest state in
construction of a solid foundation for progress and
Brazil. Thus, the total number of people benefited by the
social development.
Group’s sanitation activities grows to approximately
six million.
9
THE GROUP
In its solid and responsible history, the company has always
participated in projects that are essential for the growth of the
many countries in which it operates.
PROFILE
For 59 years Queiroz Galvão Group has worked to provide
One of the main characteristics of Queiroz Galvão Group
infrastructure for the growth of Brazil and other countries,
is its strong presence in the entire oil and gas production
in several continents. From the beginning of its activities
chain, with operations that range from the exploration
in 1953, in Recife (PE), the Group has been committed to
and production up to industrial assembly, including the
development while respecting the environment and
construction of oil tankers and platforms. QGEP is the only
human beings.
operator qualified by the National Petroleum, Natural Gas and
Bio-fuel Agency (ANP) in level A, authorized for both onshore
Headquartered in Rio de Janeiro, the Group gathers more
and offshore exploration.
than 50 companies from different areas, but operating
with synergy: Construction, Real Estate Development,
The qualification of human capital is seen as strategic, since
Environmental Engineering, Oil and Gas, Shipbuilding,
it is in the essence of the quality services and products
Sanitation, Energy, Steel, and Food.
for which the company is renowned. The integrated
management systems use state-of-the-art technology and
The construction company, for instance, records significant
follow international standards for quality, environment, health
numbers: 30,000 kilometers of highways, 95 kilometers
and safety.
of bridges and overpasses, 58 kilometers of tunnels, 200
kilometers of subway, 58 kilometers of railways, 3 million
By investing in initiatives capable of providing more
square meters of buildings, 600 kilometers of gas pipelines,
just social, economic, and environmental conditions,
1,728 megawatts of energy generation, and 1,500 kilometers
the organization seeks a transparent dialogue with the
of transmission lines.
communities that live in the areas of influence of its
developments and with other stakeholders to achieve an
Having in mind sustainable alternatives for power generation,
the company also invests in wind farms, biomass
thermoelectric power plants and small hydroelectric power
plants – PCHs.
Queiroz Galvão Group worldwide
12 Queiroz Galvão Group – 2011 Annual Report
increasingly sustainable growth.
VALUES
For almost six decades the values that guide Queiroz Galvão
Work: the password for achievement. It represents the
Group are closely related to the lessons applied in the family
path of persistence and dedication. For the Group, only the
of the company founders.
work executed with honesty and rectitude can yield the
intended results.
Moreover, the values are revealed as the secret of Queiroz
Galvão’s progress, directly responsible for the position in
Quality: the management of quality and the continuous
which the organization is today, both in Brazil and abroad.
improvement of the processes, products, and services
This strong foundation, inserted in the Group’s governance
allow the company to be recognized and increase its
process, has allowed for the sustainable growth throughout
competitiveness in the market.
the years and represents a heritage filled with lessons that
will ensure the continuity of its activities.
Reliability: the goals and deadlines are met in all work
relations, ensuring the reliability in the products and services
The values are the foundation of the company’s plans
provided by the Group.
to face the instability of the markets. These values are:
Unchangeable – regardless of the size or difficulty of the
Loyalty: the principle that supports union – the driver that
challenge –; Non-negotiable – the attitude toward business
generates the energy to fulfill commitments and
and relationships does not change –; Translation of the
overcome challenges.
brand essence – form the identity of the company and imply
directly in the institutional image perceived by the public –;
For Queiroz Galvão Group, values are not represented only
Definition of ethics and morality – reveal the
by plaques placed on the pillars of its constructions or on
Group’s character.
the walls of its offices worldwide. They are experienced and
held as flag by thousands of employees, professionals to
Regardless of the global scenario, the winds of economy,
whom these values are transmitted, more than goals and
hiccups in the market, the alternation of power or how this
objectives, they are ideals shared by the company’s founders
power is exercised, Queiroz Galvão's attitudes are always
in the past and in the present.
grounded on Work, Quality, Reliability and Loyalty.
Antônio de Queiroz Galvão
João Antônio de Queiroz Galvão
13
SHAREHOLDING STRUCTURE
*
*This total is equivalent to 51% of
the common shares and gives Grupo
Queiroz Galvão controlling interest
in QGOG
14 Queiroz Galvão Group – 2011 Annual Report
GOVERNANCE STRUCTURE
SHAREHOLDERS'
ASSEMBLY
HONORARY
ADVISORY
COMMITTEE
BOARD OF
DIRECTORS
LEGAL INSTITUTIONAL*
Amílcar Falcão
PLANNING, CONTROL &
INFORMATION*
Jones Reis
CORPORATE
COMMITTEE
CORPORATE FINANCE*
Bartolomeu Brederodes
INSTITUTIONAL POLITICAL
REPRESENTATION*
Luiz Ronaldo Cherulli
GENERAL OFFICE AND
STRATEGIC HUMAN
HERITAGE*
Ricardo Parahyba
INSTITUTIONAL
COMMUNICATION*
Márcio Victer
CONSTRUCTION &
ENVIRONMENT
COMMITTEE
OIL & GAS
COMMITTEE
REAL ESTATE
DEVELOPMENT
COMMITTEE
Construction
QUEIROZ GALVÃO
Americas
Petrônio Braz Jr.
Construction
QUEIROZ GALVÃO
Brazil
Ildefonso Colares
QUEIROZ GALVÃO
Oil and Gas
Leduvy Gouvea
Construction
QUEIROZ GALVÃO
Sub-Saharan Africa
José Diniz
Construction
QUEIROZ GALVÃO
North Africa and Asia
Marcos Jordão
QUEIROZ GALVÃO
Exploration and Production
Lincoln Guardado
QUEIROZ GALVÃO
Real Estate
Development
Frederico Pereira
SHAREHOLDING &
CONCESSIONS
COMMITTEE
BUSINESS
DEVELOPMENT
COMMITTEE
QUEIROZ GALVÃO
Business
Development
André Câncio
INSTITUTIONAL LEVEL
Vital
Environmental Engineering
Eduardo Sampaio
EXECUTIVE LEVEL
* SUPPORT TO
INSTITUTIONAL
MANAGEMENT
15
The company makes history with the construction of the
Monorail in São Paulo, and Barra Subway, in Rio de Janeiro.
Ponte do Saber – the first cable-stayed bridge in Rio de Janeiro.
QUEIROZ GALVÃO CONSTRUCTION BRAZIL
Construtora Queiroz Galvão (CQG), which originated the
and completion scheduled for early 2013. The other 21.5
Group in 1953, in Recife, has been a driving force for new
kilometers will be executed by the East Monorail Express
businesses thanks to its solid work in the different areas
Consortium, led by CQG, with completion scheduled for
of infrastructure and the oil and gas private sector, creating
2015. The project’s budget is BRL 2.4 billion.
synergy between the companies in the organization.
Today it works in the following segments: sanitation, water
The project is the first for this type of transportation in
resources, ports, airports and highways, bridges, tunnels
Brazil and the world’s largest in passenger capacity: up to
and overpasses, buildings, industrial market, hydroelectric
48,000 per hour/direction, which corresponds to more than
power plants and transmission lines, urban infrastructure,
half a million passengers daily.
environmental recovery, railways, and subway systems.
In comparison to other modals, the project has less
In 2011, the construction company began the structuring
environmental impact: since it is electric, it does not
of the public-private-partnerships (PPPs) and focused even
contribute to increasing air emissions. Furthermore, it runs
more on initiatives that require allocation of own resources.
on tires that slide over beams, which generate low levels
Among the most relevant projects in the infrastructure area,
of noise.
the company is making history with the construction of the
monorail in São Paulo.
The urban interventions were studied in a way that ensures
a landscaping treatment to create a harmonious, pleasant
A pioneer project in Latin America, the East Monorail
environment, integrated to the daily life of the population.
Express is a 24.5-kilometer-long urban mass transportation
The construction method causes the lowest possible level
project. Of the total extension, three kilometers have the
of contamination during the production phase and increases
work provided exclusively by CQG, with 450 employees
the use of recyclable material in its construction.
Monorail construction work, in São Paulo: pioneer technology in the country.
18 Queiroz Galvão Group – 2011 Annual Report
The execution of the project is the consolidation of the
The west section currently has close to 1,300 direct and
partnership between CQG and the Canadian company
indirect employees and should reach 2,200 with all service
Bombardier, responsible for the design, supply and
fronts in operation. In the south section (General Osório-
installation of the system. Of the 54 trains in the system,
Gávea), the estimated number of employees is 2,000 at the
53 are being produced in the company plant located in the
peak of activities.
municipality of Hortolândia, region of Campinas, upstate
São Paulo.
In the northeast region of the country, in addition to the
construction of a 250 kilometer-long Canal do Sertão (Sertão
In 2011, in Rio de Janeiro, CQG finished the construction of
Canal), in the state of Alagoas, CQG is building Via Mangue,
the first cable-stayed bridge in the state, Ponte do Saber – a
in the state of Pernambuco. The project comprises the
project developed simultaneously with the cleaning up of
construction of routes to improve the traffic in the south
Canal do Fundão (Fundão Canal).
side of Recife, with sensitive environmental and social
characteristics.
Still in the urban solutions area, we point out the
construction of Barra subway, also aimed at the 2016
Olympic Games. Line 4 of the subway will be approximately
To preserve the environment, the company is developing
the entire project of routes over the mangroves.
16 kilometers long and will be delivered in December 2015,
with six stations built along the route. It is expected that
300,000 people will use the new line, taking approximately
Approximately 1,100 families living in areas of risk are
being transferred to safer and better locations.
35 minutes to go from the district of Barra to the south side
of the city. Construction work is at a fast pace.
Totaling 4.7 kilometers, Via Mangue is composed of lanes
for vehicles, sidewalks for pedestrians and bike lanes. It also
The tunnel excavations in the route going to the district of
includes the construction of two overpasses, eight bridges,
São Conrado, at Emboque Barra, completed 1,400 meters.
A 379-meter-long tunnel for the parking of trains and another
280-meter-long service tunnel were finished.
At the São Conrado Station work front, the retaining
walls to stabilize the hillside region are being finalized. In
December 2011, the construction of the service tunnel was
completed. It is 177 meters long and the excavations of the
tunnels on the route going to the Barra and Gávea districts
have already reached 540 meters.
The total extension of excavated tunnels, including all
service fronts, amounts to 2,559 meters.
Barra Subway: the excavation of tunnels advances at a fast pace.
19
and two access roads, and the widening of Paulo Guerra
beginning of its construction in 2010, prioritizing the use of
bridge and the Capitão Temudo overpass.
local workforce.
In the energy generation sector, the company also had a
Construtora Queiroz Galvão plays a relevant role in the
significant performance in 2011.
Group’s operations in terms of the oil and gas production
chain, complementing the areas of exploration and
The work in the Belo Monte Hydroelectric Power Plant,
production; operation services for onshore and offshore
located in the Xingu River (PA), were initiated by the Norte
drilling rigs; and shipbuilding industry. One of the leaders in
Energia Consortium, with participation of CQG. The project
the oil and gas industrial market, the company stood out in
will have a total installed capacity of 11,233.1 megawatts,
2011 for the following projects.
and the operation of its first unit is scheduled to start in
2015. The implementation of the hydroelectric power plant
Abreu e Lima Notheast Refinery (RNEST), in Pernambuco
will add 4,571 average megawatts of power to the Brazilian
grid, which is sufficient to supply 40% of the households in
the country.
Located in the city of Ipojuca, in the Metropolitan Region
of Recife, RNEST will be the first refinery built with national
technology and the only one adapted to process 100%
With operation start-up scheduled for the first half of 2012,
of heavy crude with minimum environmental impacts, in
the Mucuri Small Hydroelectric Power Plant (PCH), located
addition to producing fuels with lower sulfur content than
in Carlos Chagas (MG), is the company’s own investment.
the level required by the strictest international standards.
The project has a total installed capacity of 22.5 megawatts
and already boosts the economy of the cities in the Mucuri
Valley region, with the creation of 500 direct jobs since the
The Ipojuca Consortium, led by CQG, is building the
interconnection of the refinery through pipelines to supply all
The construction of Via Mangue also includes eight bridges and two overpasses, in addition to access ways.
20 Queiroz Galvão Group – 2011 Annual Report
units. It is more than 30,000 tons of pipes and approximately
in neighboring municipalities, which minimizes social-
10,000 men working on the job. Completion of the project is
environmental impacts.
scheduled for 2014.
Rio de Janeiro Petrochemical Complex (Comperj)
Quip: expertise IN EPC
Located in an area of 45 million square meters in the city
Created in 2005, Quip S.A., with headquarters
of Itaboraí, the project is the largest in Latin America, and its
in the New Port of the city of Rio Grande (RS),
processing capacity will be 165,000 barrels of oil daily, in the
is a company formed by the expertise of four
first phase.
national groups. CQG has 33% of ownership
interest. Specializing in implementing EPC
The QGGI Consortium, led by CQG, is responsible for the
(Engineering, Procurement and Construction)
construction of two Hydrotreater Units (HDTs) and their
projects, the company takes on engineering
respective power substations, which will remove sulfur from
development and detailing of the work,
the fuel, making it less pollutant.
provides procurement, oversees suppliers and
conducts logistics management. In addition, it
In order to support the operations, a 50,000-square-meter
executes the construction, assembly, training,
construction site was built near the units. According to the
performance test and, when necessary, the
CQG environmental management policy, the facilities have
assisted operation.
a wastewater treatment station and storage system for
chemical products, as well as a conscious team in terms
of selective collection. Most of the employees hired live
RNEST – the construction of pipelines is one of CQG’s activities in the refinery.
21
Duque de Caxias Refinery (Reduc), in Rio de Janeiro
SUSTAINABILITY POLICY
Also in the industrial market area, the construction company
finished, in 2011, two important projects at Reduc, which will
have relevant impacts for economy and the public.
CQG decided to implement a sustainability
policy in its entire corporate management
system. Through a clear and objective
The Hydrodesulfurization Unit (HDS) has a processing
capacity of up to 5,000 cubic meters of naphtha daily in
order to significantly reduce the level of sulfur in gasoline,
from 1,000 to 30 parts per million (ppm), without altering the
characteristics of the fuel.
language, it defines the guidelines of
a company that is economically viable,
environmentally correct, and socially fair in
order to raise awareness of all its employees
in terms of making the company’s processes
more sustainable.
The Gas Production Anticipation Plan (Plangás), carried out
through a consortium, covered the services of engineering,
procurement, constructions, commissioning and assisted
operation to the project.
These contracts received “Quality and Safety” and
“Environment and Health” awards, respectively as the best
in 2011, in an event organized by the Reduc Enterprises
Implementation program (IERC).
Quip S.A., New Port in the city of Rio Grande (RS).
22 Queiroz Galvão Group – 2011 Annual Report
In the offshore market, the company is also working on four
major projects: the construction of platforms P-55, P-58, P-62
and P-63, all managed by the affiliated company Quip S.A.
These four units will have a combined production capacity
of up to 720,000 barrels per day, a significant number
that represents more than 30% of the current national
production, of 2 million barrels a day.
In 2011, CQG also maintained its investments in the
In 2012, the company will continue with the implementation
construction of platforms P-59 and P-60. These are two jack
of an occupational health and safety software to gain more
up platforms, with completion scheduled for April and July
control and speed in the transfer of data between the
2012, respectively, through the Rio Paraguaçu Consortium,
construction sites and the headquarters. Check lists will
which has interest in the Group.
also be applied in all projects, with the objectives of forming
compliance indices and facilitate the identification of projects
Excellence in process management
that need more support.
To ensure standardized results in all its projects, CQG
People Management
implements the Integrated Management System (SGI)
in full compliance with the legislation of the countries in
Focused on the well-being and training of its employees,
which it operates. Certified by the international standards
CQG believes that respect to life is an essential aspect in
ISO 9001 (quality management), ISO 14001 (environmental
the development of work. In 2011, the company offered
management) and OSHAS 18001 (occupational health and
more than 42,000 hours of training, totaling an average of six
safety management), and the PBQP-H (Brazilian Program
hours per worker.
for Quality and Productivity in the Habitat) Siac Level A, the
company pursues excellence in the management of
its processes.
Risk Assessment
Prior to the beginning of the construction of each project,
CQG develops a risk assessment program, including the
identification, quantification and control – in addition to
promoting programs to prevent errors and risk factors for its
employees and clients and for the business itself.
The construction company and its consortiums have
constant improvements in accident rates. Occupational
disease rates decreased by 29.15% from 2009 to 2011,
and the injury rate showed a 0.49% reduction in the same
period. In 2011, there were no fatalities.
Employee well-being is a priority of the
health, training, and safety programs.
23
QUEIROZ GALVÃO INTERNATIONAL CONSTRUCTION
Operating in the international market since 1984, Construtora
first Hydroelectric Power Plant by Eletrobras outside Brazil.
Queiroz Galvão (CQG) has different units which are in
Also in Nicaragua, the company works in the geothermal
responsible for business management abroad:
power plant of San Jacinto-Tizate as the first Brazilian
Latin America, Sub-Saharan Africa, North Africa and Asia.
company to execute construction work in this segment.
Latin America
In Venezuela, the construction company proceeds with
the Yacambú-Quibor project. Located in the state of Lara, its
In 2011, the company consolidated its operation in Latin
objective is to take advantage of the waters of the Yacambú
America with significant revenue of more than 200 million
River, diverting and storing these waters as far as the Quíbor
dollars. The revenue resulted from the strategy to divide the
Valley. Part of the water will be geared to direct irrigation
region into four large areas – Southern Cone, Northern Cone,
of 19,000 hectares, another part will be incorporated to
Venezuela, and Central America and the Caribbean – with
the existing groundwater aquifers, and a third part will be
directors that gained more autonomy and the necessary
integrated to the Barquisimeto metropolitan aqueduct.
support from headquarters for local management of
the projects.
Sub-Saharan Africa
In the Dominican Republic, the unit was awarded the
In the Sub-Saharan Africa, CQG is developing businesses
contract with the National Institute of Water Resources
that aim to contribute to the economic and social growth
(INDRHI). The work comprises the execution of the
of the countries in the region. The beginning of the works
construction work and the supply of all goods and services
occurred in Luanda, capital of Angola, and in the province of
required for the completion of the Agricultural Development
Kwanza Sul, in 2006. The projects expanded rapidly to other
Project Azua II – Pueblo Viejo.
regions such as Benguela, Bié and Moxico. In 2011, the
company decided to expand its presence in more locations.
In Peru, CQG is participating, for the first time, of a
concession outside Brazil. The company worked in the
construction project of the Inambari-Azangaro section of the
Southern Interoceanic Corridor, which connects the country
to Brazil and, since July 2011, has been operating in the
SurPeru’s toll.
In Argentina, the company obtained the National Register
for Constructors of Public Works.
In Nicarágua, the company is participating in the project for
the construction of the Tumarin Hydroelectric Power Plant,
in association with Eletrobras and the local government.
Tumarin, which has a 253-megawatt capacity – energy
sufficient to supply 30% of the country’s demand –, is the
Interoceânica Sur Highway – Peru.
24 Queiroz Galvão Group – 2011 Annual Report
The company opened offices in Mozambique, Ghana and
With an office already established in Dubai, the company
Gabon in order to operate respectively in Southern Africa,
opened a branch in Abu Dhabi, capital of the United Arab
Western Africa and Central Africa.
Emirates, and a representative’s office in Doha, capital
of Qatar.
CQG signed contracts for the construction of new roads in
Angola, such as the construction of 7th Avenue, an important
Based on these countries, the company began to develop
roadway to serve the population in the outskirts of Luanda,
commercial actions in other regions, such as Saudi Arabia,
and resumed work in sections of the Quibala-Gabela and
Oman, Iraq, Bahrein and Turkey.
Cariango-Mussende highways, both in Kwanza Sul.
The economic stability of the Middle East and the
The company diversified its operation in other infrastructure
demand for investments in infrastructure projects helped
segments such as the real estate area, with the construction
the business area to gain new markets as early as 2012,
of the Brazilian Embassy Building in Luanda, and Residencial
signing contracts for projects that are in the bidding process.
Morabeza, a high-end real estate project.
The operations in Libyan territory are still on focus, and,
therefore, the local situation continues to be monitored.
It prospected businesses in Ghana, Equatorial Guinea,
Gabon, São Tomé and Príncipe, Namibia, Botswana,
Mozambique, Tanzania and Kenya.
CQG’s Angola branch has approximately 80% of local
employees in its staff. The administrative employees
participate in all training programs. The operational staff
in the field receives guidance on health and safety, with
special attention given to fight against the endemic diseases
common to the region, and sexually transmitted diseases.
Northern Africa and Asia
In 2011, the political conflicts in Libya started, which led to
the interruption of CQG’s contracts in the country. From
then on, the board of directors of the region’s business
unit decided to reinforce the commercial operation in
the countries of the Persian Gulf: United Arab Emirates,
Qatar, and Saudi Arabia, whose economy and politics are
more stable. All the company’s programs, in 2011 aimed at
consolidating the expansion towards the Middle East.
Road project in Angola.
25
The company consolidated great achievements in 2011
in the segments of energy, highways, sanitation and
the shipbuilding industry.
Rio-Teresópolis Road, section managed by CRT.
Engaged in the process of intensification of public
In June, the company signed a contract with Sete Brasil
concessions since the 1990´s, the Group participates in
for the construction of seven drill ships, projects that are in
Brazil´s growth with significant investments in infrastructure
advanced detailing phase.
areas. Queiroz Galvão Participações e Concessões (QGPC)
operates in the business areas of energy, highways,
sanitation, and shipbuilding industry.
In December, EAS delivered to Petrobras the largest
semi-submersible platform hull ever built in Brazil, with
total quality assurance and compliance with safety,
Shipbuilding Industry
environmental, and health aspects – this lowerhull of the
P-55 platform weighs a total of 25,000 tons, measures 44
In the shipbuilding sector, the company holds a 50% interest
meters in height and has a 94 x 94 meter base.
in Estaleiro Atlântico Sul (EAS), the largest shipyard in the
Southern Hemisphere, located in the Suape port complex
The international certifier American Bureau of Shipping
in Pernambuco. In 2011, the shipyard consolidated great
(ABS), one of the main shipbuilding industry classification
achievements.
societies in the world, certified all phases of the João
Cândido vessel, the first built by EAS. After successful sea
trials, the project was delivered to the client, Transpetro.
P-55 platform under construction at Estaleiro Atlântico Sul (PE).
28 Queiroz Galvão Group – 2011 Annual Report
People Management
professionals work in integration with the operational
teams, identifying, analyzing, treating and controlling risks
Workforce training and empowerment are priorities for
in order to eliminate them. Hence, the company conducts
EAS. Thus, the shipyard chose to use local labor, a bet in
inspections, monitoring, preliminary risk assessments and
the region's economic development. It currently generates
training to perform dangerous tasks.
approximately 5,000 direct jobs with qualified professionals
for the shipbuilding industry. In 2011, several programs were
In 2011, EAS also maintained environmental monitoring
developed, such as: promotion of leaders and supervisors,
and control in partnership with local universities through
the Work Market Moment Program and a partnership with
the implementation of eight basic environmental programs
Rio de Janeiro Federal University (UFRJ) for a vacation
(PBAs): environmental management; solid waste
internship in the shipyard.
management; determination of the level of toxicity in
wastewater; determination of the survival rate of nektonic
In addition to the training of the workforce, EAS has invested
organisms; monitoring the quality of surface and ground
in the mapping of processes, assessment of operational
water; monitoring of the biotic environment in the estuary
risks, and in the implementation of operating procedures in
of the Tatuoca River; environmental education program and
quality, safety, environment, and health, which are the basis
social communication for the environmental area.
for obtaining the Integrated Management System
(SGI) certifications.
Risk management at Atlântico Sul is made through a
multi-disciplinary team comprised of engineers, doctors,
biologists, safety technicians and firefighters. The
AWARDS
Top HR ADVB-PE 2011: thanks to the EAS
Professional Training Program, which hired more
than 3,000 people, previously with low level of
education and no professional qualification, from
the municipalities of Ipojuca, Cabo de Santo
Agostinho, Jaboatão dos Guararapes, Escada
and Moreno.
Largest and Best in Transportation
and Logistics:
Granted by the Transporte Moderno magazine,
an award in the Largest and Best Shipbuilding
Industry category.
Sea trial of the João Cândido ship.
29
Sanitation
book and production of a documentary named Tragédia e
reconstrução – O desafio das águas (In loose translation:
QGPC holds a 24.17% interest of the holding Saneamento
Tragedy and reconstruction – The challenge of the waters).
Ambiental Águas do Brasil (Saab), which is present in eight
municipalities in the state of Rio de Janeiro and four in
The company was successful in the bid for sewage
São Paulo. Nearly 2 million inhabitants are served by the
treatment and collection in the western side of Rio de
company, with treated water and sewage collection. In
Janeiro, the AP-5, which comprises 21 districts. The region
2011 the 11 concessionaires of the organization invested
has an area of 592.33 square kilometers and corresponds
approximately BRL 84 million in their operation areas. See
to almost half of the city area (48.4%). The area has a
below the highlights of the year.
population of more than 1.8 million inhabitants, which
represents 27.6% of the municipality.
Pro-activity and dedication of the teams in the recovery of
the damaged water supply structures and the fast service
The creation of Soluções Ambientais Águas do Brasil (Saal),
provided to the population affected by the tragedy caused
a company operating in the industrial sector developing
by the heavy rains in Nova Friburgo (RJ) in the beginning
projects for the treatment of industrial effluents and the
of 2011. The experience resulted in the publication of a
management of environmental liabilities. In fact, the new
company has already signed a contract with Pepsico.
Water treatment station, Niterói (RJ).
30 Queiroz Galvão Group – 2011 Annual Report
Environmental education
the 2014 World Cup and the 2016 Olympic Games. Therefore,
it is in this market niche that Saab intends to concentrate its
Aware of its social role and the preservation of natural
investments in the coming years.
resources in the communities in which it operates, Saal has
been developing several projects in these areas investing,
Currently, in the public sector, the company´s greatest
mainly, in environmental education. The program of visits to
challenge is to start the implementation of the project in the
water and sewage treatment stations (ETAs), for example,
west side of Rio de Janeiro, while in the private sector it is
is carried out by the utility companies of Águas do Brasil,
the consolidation of Saal.
in association with the municipal Board of Education and
Environmental Department. It works with students from
In addition, the signing of the contract with Águas do
public schools, private institutions, technical schools
Amazonas is planned for the first half of 2012, and should
and universities.
increase the total number of people benefited by the
Group´s sanitation work to more than six million people.
Every week, students visit stations and listen to explanations
outdoors, touring the facilities and closely following every
step of the treatment processes. Visits are followed
by presentations of videos and animations about the
importance and the care that should be given to water and
the environment. At the end, booklets with games and
pastimes that stimulate students to memorize what they just
learned are distributed, as well as brochures with information
on how to save water, identify leaks and correctly wash
water tanks and reservoirs (read about other Saab programs
in chapter Responsible Projects).
Perspectives
According to the Brazilian Association of Private Water and
Sewerage Utilities (Abcon), the private sector serves today
approximately 10% of the Brazilian urban population in the
provision of public services in the area of sanitation, whether
through concession contracts or through public-privatepartnerships (PPPs).
The association foresees a 30% to 40% increase in the
participation of private companies in the basic sanitation
sector to serve the urban population in the next ten years,
especially due to the major events to occur in Brazil, such as
Águas de Nova Friburgo – Treatment Station.
31
Energy
Highways
In the energy sector, QGPC continued, in 2011, with the
In the southeast, Queiroz Galvão participates in the
operation of the three hydroelectric power plants controlled
management of the Rio-Teresópolis Concessionaire (CRT),
by the company: Santa Clara, in Minas Gerais, Quebra
which has 142.5 km of lanes and runs across several
Queixo, in Santa Catarina, and Jauru, in Mato Grosso. The
municipalities between Baixada Fluminense (Lowlands) and
company also advanced with the construction of the Mucuri
the Região Serrana (Highlands), in Rio de Janeiro. In the
Small Hydroelectric Power Plant (PCH), in the municipality of
south of Brazil, the company participates in the Integrated
Carlos Chagas (MG), built by CQG.
Highways of Paraná S.A. (Viapar), which manages sections of
federal highways BR-369, BR-158 and BR-376; and of state
According to data from the state government, Minas Gerais
highways PR-444 and PR-317.
has the largest number of PCHs in Brazil. There are 89 in
operation, with generation capacity of 589,205 kilowatts
In January 2011, CRT faced the great challenge of recovery
of power, which corresponds to 3.19% of all the energy
of the highway along some 40 kilometers, in the Teresópolis-
produced in the country.
Além Paraíba section, due to the strong rains that fell in the
highland areas in that month, in what was considered the
Risk Management
greatest weather-related tragedy in the country´s history.
The procedures of the contingency management and risk
Risk management of the plants managed by QGPC is done
control plan enabled a series of initiatives that resulted in the
in the areas of assets, personnel, environmental, and dam
nonexistence of victims and damages in the users’ vehicles.
safety. The environmental procedures are highlighted:
Recovery actions in the affected areas allowed for the
agreements with the Environmental Police of Chapecó;
normalization of traffic in a short period of time, as well as
contract with the company that implements and monitors
the improvement and reinforcement in the affected areas for
the environmental programs determined by the Santa
the preservation of the structural conditions of the highway.
Catarina agency, the Environment Foundation - Fundação
do Meio Ambiente (Fatma); implementation of the Safety,
The risk classifying organization Fitch Ratings increased
Contingency and Emergency Manual; and implementation of
CRT’s national rating from A+(bra) to AA- (bra), which means
oil contention tanks and storage for flammable substances,
that the level of reliability of the concessionaire increased in
in order to minimize environmental damages.
respect to image, risk, credit, transparency, governance and
risk assessment by users, among other factors.
Dam safety acts in the implementation of the Emergency
Operation System (Sosem), which should be triggered in
CRT completed the construction of the first section of the
case of great inflows in the reservoir, and in the report of
third lane in the uphill direction to Teresópolis and initiated
periodic readings of the dam's instruments, which are sent
the second section, which will improve the flow by allowing
for specialized analysis and issuance of technical reports.
heavy vehicles to travel on the right lane, allowing for
safer overtaking.
32 Queiroz Galvão Group – 2011 Annual Report
Viapar also highlights remarkable facts in 2011.
The route, with a two-lane 9.9 kilometer section, will be
connected by the city`s south side at kilometer 210.7, near
Increase in traffic due to increased harvest in the state of
Jandaia do Sul.
Paraná and the 7.63% increase in the state’s vehicle fleet,
resulting in greater use of the highway and consequently
Risk Management
better economic result.
In terms of traffic accidents on the highway, CRT relies on
Completion of 131 kilometers of pavement restoration,
a multi-disciplinary team (Vida na Preferencial – Life on the
improving traffic conditions and providing more safety
Preferential Lane), which deals with the spots with abnormal
to users.
occurrence of accidents. Based on the Highway’s Monitoring
Policy, an evaluation and classification of the existing
Start of the construction in the Mandaguari contour, in
risks is carried out through the monitoring of climate and
the north of Paraná. The work is a long-time aspiration of
geotechnical conditions, establishing an annual monitoring
the municipality and users of BR-376, starting at kilometer
program integrated to the company’s strategic planning.
203 of the highway, in the Maringá-Mandaguari direction.
In terms of environmental risks, training on accidents
with cargo is developed involving the Civil Defense, the
environmental organizations and the Highway Police, in
addition to the environmental preservation in the right-of-way
and the permanent inspection of the environmental liabilities
near the location.
In terms of safety, the company´s Safety Engineering
and Labor Medicine Specialized Service (SESMT) trains
employees on signaling traffic due to incidents and highway
construction work, fire brigade, hazardous cargo and
defensive driving.
Concerned about minimizing the environmental impacts of
their activities, the concessionaires carry out, among other
initiatives, the following: Fauna Viva (Living Fauna) Project,
work in rescuing animals found on the highway; and the
Environmental Education Program, aimed at developing
awareness of the parties directly involved with the project's
execution and operation, who are the workers, users of the
highway, and the local population (read about other programs
in chapter Responsible Projects).
Rio-Teresópolis Road, portion managed by CRT.
33
The company stands out in the market for urban cleaning,
destination and treatment of solid waste in Brazil.
Employee in action at the Waste Treatment Center of Juiz de Fora (MG).
Vital Engenharia Ambiental S.A. was created in 2007 as a
result of more than 15 years of the expanding operations of
the Environmental Department of Queiroz Galvão Group.
Among many challenges that were overcome, the company
was born with the know-how gained from the recovery of
what was the largest open-air dump in Brazil: The Jardim
Gramacho landfill, in the city of Duque de Caxias, in Rio de
Janeiro. Currently, the company is one of the largest in the
segment of public cleaning services and treatment of solid
waste in Brazil, operating in several states. In 2011, Vital
grew in its sector with important achievements. The most
relevant of which are:
Creation of EcoNit, through a Public-Private-Partnership
(PPP), a company responsible for all waste management of
the city of Niterói for the next 20 years, from collection to
final destination, including transportation.
Vital is part of the company Inova Gestão de Serviços
Urbanos which operates 50% of the urban cleaning in the
city of São Paulo, providing services to 13 administrative
regions. Approximately 3,500 kilometers of public streets are
swept every day, distance equivalent to a round trip between
the states of São Paulo and Bahia.
In the Candeias Treatment Center, in Jaboatão dos
Guararapes, the company is responsible for receiving
residential waste from the Greater Recife Area, with a
capacity of 120,000 tons per month. CTR (Waste Treatment
Center) has a leachate treatment station, in addition to a
license for recycling inert waste.
According to the Brazilian Institute of Geography and
Statistics (IBGE), based on data from the 2010 census,
Vitória is the cleanest capital city in the country. This result
is the recognition of Vital´s work, which collects waste and
performs other cleaning services in the municipality.
Cleaning of monuments, São Paulo (SP).
36 Queiroz Galvão Group – 2011 Annual Report
Integrated services
and mechanical sweeping of public streets, complementary
services (cleaning of beaches, street market and slopes,
Based on the needs and characteristics of each municipality,
trimming of trees and removal of yard waste, maintenance
Vital integrates a wide range of services for planning and
of parks and gardens, clearing of storm drains, painting of
management of urban cleaning, which reduces costs to the
curbsides), transportation and final destination of waste, with
contracting parties. Furthermore, the company optimizes the
the proper treatment. The company also provides services
execution of activities, such as: collection of residential and
for washing and conservation of monuments, contributing to
commercial solid waste, hospital waste collection, selective
the preservation of the historical and cultural heritage, as it is
collection, collection and destination of inert waste, manual
done in the city of São Paulo.
Seedling greenhouse for reforestation at the CTR in Juiz de Fora (MG).
37
Waste Treatment Center
Environmental Education Program
The implementation of the National Solid Waste Policy in
In its CTRs the company adopts environmental education
2010 foresees the eradication of open-air dumps in the
programs aiming to comply with the following guidelines:
country and the creation of appropriate landfills for the final
destination of waste by 2014. Based on these two major
challenges, Vital focuses its strategy on the implementation
To promote critical reflection on solid waste, reviewing the
relationship between man/nature and considering a global
of new Waste Treatment Centers (CTRs). To this end,
the company invests in technological innovation through
research and partnerships with universities, to search for
PROJECT CRIAR
economically viable solutions in Brazil, both for waste
treatment and the production of energy.
Vital Engenharia Ambiental participates in
Project Criar – Brazilian acronym for Center
for Recycling, Innovation, Learning, and
The units built and operated by Vital are committed to social
well-being and are licensed by the competent environmental
agencies. The facilities comprise environmental education
centers open to visits from schools, public institutions,
associations, universities and researchers.
Renovation - in Linhares (ES), in partnership
with the municipality’s Department of the
Environment and Water Resources, the
company Sucos Mais (SABB Coca-Cola), the
Coca-Cola Brazil Institute and the NGO Doe
seu Lixo (Donate your Waste). The aim of
the program is to implement and operate an
innovative system of selective collection and
recycling of solid waste in the city, generating
social benefits to the registered pickers.
Methane gas burners at the CTR in Juiz de Fora (MG).
38 Queiroz Galvão Group – 2011 Annual Report
reinterpretation of social-economic, political and cultural
relations, as well as their impacts on the environment.
Disseminate information about environmental and solid
EMPLOYEE HEALTH
In 2011, Vital carried out a pilot project on
Analysis of Ergonomics at Work (AET) with
waste issues, contributing to form a critical awareness of the
some employees (environmental agents,
public in general.
chainsaw operators, among others). It is
a methodology that studies the operating
method to understand the interaction of
Encourage a change of concepts, actions, and attitude
workers with technology, organization and
in employees, the communities, and the public as a
the work environment, seeking to make
whole in terms of environmental control and mitigation of
activities simpler, safer, more comfortable and
environmental impacts in the project's activities.
productive. In addition to reducing leave of
absence resulting from injuries or traumas, the
program contributed to improving the quality
People Management
of life and health of professionals.
With approximately 25% of the number of employees in
the Group, Vital demonstrates that the cleaning activity is
The company further invests in the development of
always labor intensive. The contract for urban cleaning in the
awareness campaigns to turn the population into partners
city of São Paulo, for example, is the largest ever managed
in the conservation and cleaning work. In all places where
by the company in terms of personnel: more than 5,000
it operates, Vital, inspired by the quality of the work it
employees.
provides, seeks to stimulate residents of the communities to
also contribute to a cleaner city by not littering public streets.
Residential waste collection, São Luís (MA).
39
In terms of launches and sales, the numbers for 2011
reflect the results that keep the company among the
largest growing in the sector.
First building tower completed at Centro Empresarial Queiroz Galvão in Recife (PE).
The expansion of Queiroz Galvão Desenvolvimento
310% in contracted sales. These indicators measure the
Imobiliário (Queiroz Galvão Real Estate Development - QGDI)
excellent results that keep QGDI among the companies
in the domestic market, in its area of work – construction
with the largest growth rate in the sector. The assertive and
and marketing of residential, commercial and leisure real
planned launches were very well accepted by the market
estate –, continues at a fast pace. The large growth in 2011
in 2011:
can be evidenced both in terms of launches (31.4%) and in
contracted sales (64.4%), compared to the previous year.
The first project of the Rio de Janeiro office, the Barra
The numbers for these two variables in 2011 can also be
Village House Life, had all its units (324) sold on the
compared to those reached in 2009: 402% in launches and
launch day.
Aquarela Paulistana project, São Paulo (SP).
42 Queiroz Galvão Group – 2011 Annual Report
In the Pernambuco office, where QGDI started its
The main investments of QGDI in 2011 focused on
operations, the company launched a project – Maria
expanding operations to new cities, on training of teams
Carmem, Maria da Glória, Maria Lina and Maria Lara – with
and on improvement of internal processes, as well as new
412 units. More than 70% of the total offered to the market
technologies. Considered one of the differentials to leverage
was sold in the first month.
good performance, the company continued investing in the
pool of lots for its real estate developments, adding BRL 328
The São Paulo office, in turn, innovated by launching a
million to the existing volume. As a result, the company’s
project in the city center, the Aquarela Paulistana, in the Bom
total pool of lots increased by 20.5% when comparing the
Retiro district, which also obtained great results, having sold
volume in December 2011 to the volume registered in the
more than 60% of the units in eight months.
same month in 2010.
Another highlight of the company in 2011 was the delivery
Excellence in Management
of 11 projects, totaling more than 288,000 square meters of
total built-up area: seven in Pernambuco and four in
In order to better understand its clients’ needs and offer
São Paulo.
what the market is really interested in buying, the company
listens to the clients before, during, and after the acquisition
NATIONAL RECOGNITION
In Pernambuco: the Ademi Trophy, the most
relevant award in the real estate market, for
the Maria Angela Lucena project, and also
3rd place for Maria Edicta, both located in the
best residential area in the city: Boa Viagem
avenue.
In Rio de Janeiro: Ademi Trophy in the
category Large Residential Building Project,
with the first launch in the city – the Barra
Village House Life.
In the Northeast: Anuário Valor 1000, by the
Valor Econômico newspaper – QGDI was
chosen the region’s best company in its sector.
Prospection of areas.
43
of the property. In 2011, the company developed the
Engineering Notebook, a document for the specific control of
the construction work, through which the daily activities are
systemically monitored.
The company also finished the first module of the Leader
Development Program (PDL), with the participation of
111 employees, from the Pernambuco, São Paulo, Rio de
Janeiro and Bahia offices. Still in the context of management
training, several executives participated in the holding’s
Executive Development Program.
For senior management, the Managing Committee discusses
strategic issues of the company's business through monthly
meetings in which indicators of the QGDI’s Dashboard are
analyzed – monthly metrics focused on annual goals.
In 2011, a new moment for the discussion of the company’s
most detailed operation was created, the Operational
Managing Committee. In addition, QGDI conducted
meetings with the Expanded Managing Committee in the
regional offices to align the annual strategy. The meetings
involved the Managing Committee, managers, engineers
and architects.
Certified by ISO 9001 (Quality) since 2008 and by the
Programa Brasileiro de Qualidade e Produtividade do Habitat
(Brazilian Program for Quality and Productivity - PBQP-H)
since 2003, the company has processes that are mapped
and controlled in order to advance in the continuous
improvement of products and services. In 2011, the
company obtained recertification of the quality norm.
Sustainability
Aware of its social and environmental responsibilities,
QGDI initiated, in 2011, discussions about the creation of a
Sustainability Committee to consolidate the good practices
Luiz Dias Lins and Maria Angela Lucena Buildings, Recife (PE).
44 Queiroz Galvão Group – 2011 Annual Report
related to the subject that have already been performed in its
2011, management level achieved more than 1,000 hours
projects, such as:
of training in all regional offices. Furthermore, the company
supports postgraduate courses for employees and promotes
Selective collection in construction sites, with indicators to
monitor and minimize the generation of waste.
Use of wood from reserves legalized by Ibama in
the program Jovem Talento (Young Talent) with
engineering interns.
Perspectives
its projects.
Despite all the discussions concerning the depletion of the
Reduction of impact in areas neighboring QGDI
funding that fuels the real estate market, perspectives are
developments through noise control and physical
good, since there is characterized demand and, especially
protections, in addition to precautions for the preservation of
political will of the federal government to maintain the
traffic routes and care for pedestrians.
housing issue in the country’s priority agenda. In 2012, the
major companies in the market estimate an average growth
Saving of water (individual water meters, double-phase
toilet flushes, aerators in faucets, among others) and
of 5% to 10%. However, some of them estimate to grow
more, and QGDI is included in this group.
power in projects (lighting control system through presence
sensors, distributed lighting command in the garages, VFD
In the program Minha Casa, Minha Vida (My House, My
elevators – variable-frequency-drive –, prioritization of light
Life), the company is responsible for the construction of
colors in the façade to reduce heat absorption,
a project in the city of Abreu e Lima, in Pernambuco, with
among others).
approximately 2,300 units and delivery scheduled for 2014.
Following the market demand, QGDI will launch the first
Training and lectures to raise awareness among employees
on the need to adopt environmental best practices. In
project in the Federal District, and is already planning units in
Ceará, still with no defined date for the launch.
Barra Village House Life, Rio de Janeiro (RJ).
45
The significant growth in operational and financial
indicators, in 2011, marks the company’s history.
Alpha Star: offshore oil drilling rig.
2011 was a milestone for Queiroz Galvão Óleo e Gás
Among the achievements in 2011, QGOG highlights:
(Queiroz Galvão Oil & Gas - QGOG) as the year of largest
growth of its operational and financial indicators since the
In June and July the company initiated the operation of five
beginning of its operations, in 1980. Net revenue had a
new drilling rigs: three onshore, QG-V, QG-VIII and QG-IX,
70.5% variation. In the same period, the company expanded
and two offshore for ultra-deep waters, the Lone Star and
its operational fleet by 50%, reaching a total of 15 drilling
the Alpha Star – the latter delivered to Petrobras before the
rigs, nine onshore and six offshore. The growth is also
established deadline.
reflected in the number of employees, which is currently
2,100 and is expected to reach 2,500 in 2012.
Lone Star was built in Abu Dhabi, with a capacity to
operate in water depths of up to 2,400 meters and drill wells
These results can be explained by the strengthening of the
of up to 9,000 meters in depth.
oil and gas market, which favors the plans for development
and exploration of QGOG’s client companies, such as
Alpha Star, built in the Keppel Fels shipyard in Singapore,
Petrobras, which concentrates a major part of the company’s
is capable of operating in water depths of up to 2,700
businesses, in addition to OGX and HRT, two new clients
meters and drill wells up to 9,000 meters deep. The new rig
undergoing an expansion and consolidation process of their
is the company's third semi-submersible platform for deep
operations in the Brazilian oil and gas sector.
waters, joining the Lone Star, which started to operate in the
beginning of 2011, and its twin sister, the Gold Star, which
has been operational since 2010.
Workers during oil drilling performed by the Alpha Star.
48 Queiroz Galvão Group – 2011 Annual Report
In 2012, QGOG should receive two new drilling units for
ultra-deep waters to operate for Petrobras, the drill ships
Amaralina Star and Laguna Star. In addition to these, the
company was awarded three other ultra-deep water rigs, in
association with the company Sete Brasil, in the bid carried
out in 2011 by Petrobras for the supply of up to 21 rigs,
which will be built in Brazil in an operation scheduled to start
in 2016.
In the segment of Floating Production, Storage and
Offloading units for oil and gas (FPSO), the company
continues to grow. In 2011, the company, along with its
partners SBM and Mitsubishi, signed a new contract with
Petrobras, for the construction and chartering of the FPSO
Cidade de Ilhabela, which, along with the FPSO Cidade de
Paraty, in which QGOG also participates, will be the largest
and most modern production units to operate in the world.
Excellence in Management
Excellence in drilling services and the completion of oil and
gas onshore and offshore wells significantly contributed
for QGOG to achieve its recertification of its Integrated
Management System (SGI) in 2011. This result confirmed,
once again, that the company complies with and follows the
international requirements of the norms ISO 9001 – Quality
Management, ISO 14001 – Environmental Management
and OSHAS 18001 – Occupational Health and Safety
Management. SGI's main focus is on stakeholders (clients,
shareholders, the community, suppliers and employees), and
the results achieved for Quality, Health, Environment, and
Safety (QSMS) show that the company is on the right track.
QGOG considers safety assurance in its operations
as one of its main objectives. For this purpose, it has
been continuously working on improving its Integrated
Management System, prioritizing aspects related to
risk management in operations. In 2011, the company
Alpha Star: offshore oil drilling rig.
49
invested more than BRL 5 million in training courses, which
(Education Journey), an integral part of the Project for Risk
corresponded to more than 4% of the hours worked to
Management in Operations. The methodology, acquired
maintain and improve competencies of its employees.
through São Paulo University (USP), has been applied
worldwide, with significant results, and is being customized
The following initiatives can be highlighted:
according to the specificities of the oil and gas sector
and QGOG´s characteristics. The journey is comprised of
The safety campaign Nossos Valores, Nossa Segurança
an intensive training program on risk management, and
(Our Values, Our Safety), which was conducted between
it shows results that go beyond training of employees.
March and December 2011, covered essential topics
It contributes to the development of a self-diagnosis of
such as technical auditing, training for perception of
the company, which may be related to SGI´s maturity. In
risks, development of the operational risk assessment
addition, it provides the establishment of action plans to lead
methodology, training in investigation of incidents and
the company to higher levels of maturity in the management
accidents, among others. The initiatives received formal
of its processes, mitigating risks in the operations and
recognition both from Petrobras, onshore and offshore, and
allowing for sustainable growth. This process of evolution
from OGX, being presented as Best Management Practices.
can last from five to ten years, and QGOG is the first
Brazilian company in the oil and gas sector to adopt
In terms of evolution and consolidation of the SGI, the
major highlight is the application of the Jornada de Educação
Control room of the Gold Star platform.
50 Queiroz Galvão Group – 2011 Annual Report
this methodology.
Perspectives
In the light of this expansion, QGOG develops its strategic
positioning based on the medium and long terms. In
After 2011, a year of significant growth for the company,
December 2011, the company started the planning of the
QGOG continues to operate in a fast pace to enable new
2012 to 2020 period, to be finalized in the beginning of
leaps. In Brazil, the onshore and offshore business sectors
the second semester of 2012. The assumptions prepare
remain strong, as well as the opportunities in projects to
the company for the internationalization of its operations
operate FPSOs. For 2012, the expected growth rate for the
and incorporate guidelines to strengthen the sustainability
company is of 20% to 25%.
culture in the organization.
QG-IX: onshore oil drilling rig in the Amazon region.
51
In 2011, the company went public, in what was considered the
largest IPO of the year, and consolidated its portfolio of assets.
PMNT-1: exploration in Manati (BA).
The only publicly traded company in the Group, Queiroz
The Manati Field, 45% owned by QGEP, is located in the
Galvão Exploração e Produção (Queiroz Galvão Exploration
Camamu basin, off the coast of Bahia. In operation since
and e Production - QGEP) made an initial public offering of
2007, it is considered one of the largest non-associated
shares in February 2011, in what was considered the largest
natural gas production fields in Brazil. The company´s
IPO of the year. The company raised a total of BRL 1.5 billion
revenue is mainly from a take or pay contract for the sale to
and operates with an estimated market cap of BRL 4 billion
Petrobras of gas produced in the field. Also in the Camamu
(12/31/2011), with 30% of its capital traded in the market.
basin, and originating in the same block (BCAM-40), the
This is a positive result for a recently and independently
company partly owns a stake in the Camarão Norte gas field,
created company, from the spin-off of exploration and
which is currently in the development phase.
production assets of Queiroz Galvão Óleo e Gás drilling
activities, which occurred in 2010.
With the initial offering of shares, through which QGEP
raised BRL 1.5 billion, approximately 45% of these resources
QGEP is one of the largest Brazilian privately-held companies
were used in the acquisition of assets. In 2011, through
in the oil exploration and production sector, in annual
farm-in (process of acquisition of concession rights held by
production of barrels of oil equivalents (“boe”). In 2011, the
another company), QGEP added blocks BS-4 and BM-S-8 to
company consolidated its business portfolio:
the portfolio, both located in a premium area of the Brazilian
pre-salt region, in the Santos basin.
QGEP has concession rights in seven exploration blocks,
distributed in the Santos (SP), Jequitinhonha (BA) and
Camamu-Almada (BA) basins.
QGEP is the only Brazilian independent company qualified
as Operator A by the National Petroleum, Natural Gas and
Bio-fuel Agency (ANP), which means that it can operate in all
environments: onshore, shallow, deep and ultra-deep waters.
Seismic analysis at QGEP´s office, Rio de Janeiro (RJ).
54 Queiroz Galvão Group – 2011 Annual Report
In 2011, the company had a positive cash flow for
its operational activities, reaching BRL 194.2 million.
Furthermore, QGEP´s net revenue totaled BRL 289 million.
In terms of net earnings, the company totaled BRL 92.1
million and net margin reached 32%.
Commitment to sustainability
In its first year of existence, QGEP states that sustainability
is one of the basic principles of its work:
QGEP chose to join BM&FBovespa´s Novo Mercado (New
Market), known for gathering the companies that are most
committed to best practices in corporate governance, and
that already have an Ethics Code of Conduct, produced with
the participation of all its employees.
In 2011, the company also prepared itself to develop its
first sustainability report, following the international standard
of the Global Reporting Initiative (GRI). In December of
the same year, the Sustainability and Communication
Coordination was created, reporting to the Safety,
Environment, and Health (SMS) Management and directly
linked to the executive board
Aware of its social-environmental responsibility, the
company chose to maintain some projects in the area of
influence of Block BM-J-2 (Ilhéus, Una, Canavieiras and
Belmonte), located in the Jequitinhonha basin, in southern
Bahia, where the company has a 100% ownership. The
Fish Offloading Monitoring Project, for example, which
seeks to contribute to creating statistical data about the fish
production in the region.
QGEP is a signatory to the Pact for the Eradication of
Bonded Labor and to the UN Global Compact, having an
integrated management system that guides its performance
in terms of the environment, quality, safety and health
of workers.
Preservation: biologist studies the carcass of a marine specimen.
55
Transparent dialogue
achievement of the objective set forth in the company´s
vision: to be among the three largest Brazilian oil and gas
With ethics and transparency, QGEP builds solid relations of
companies by 2020, being recognized by society for its
trust and respect.
transparent and responsible management.
All QGEP´s external stakeholders were mapped based
The current portfolio is geared toward the reduction of risk in
on an internal survey, a sectoral benchmark study and an
the short term and a significant growth in the medium term.
analysis of the sector.
As a result, new opportunities for portfolio expansion are still
under consideration especially in the offshore sector. The
The company has always operated in a participatory
company concentrates its attention in the Brazilian market
manner with local communities. In Manati, for example,
and is prepared to actively participate in the next rounds of
where Petrobras is an operator, and in the BM-J-2 Block
biddings to be carried out by ANP without losing sight of the
area, residents took part in debates about the company´s
international scenario.
local operations.
In 2011, QGEP acquired two important shares in blocks
Perspectives
located in the Santos basin, using part of the resources
raised in the IPO. The first one, which took place in mid 2011,
Maintain growth through the current exploratory campaign
was the acquisition of a 10% interest in the BM-S-8 Block,
and the acquisition of assets. This is one of QGEP´s main
the largest in the basin, with approximately 2,400 square
aspirations for the coming years, whose focus is the
kilometers and located in a premium area of the pre-salt
Production control panel for the Manati field (BA).
56 Queiroz Galvão Group – 2011 Annual Report
region. The block´s operator is Petrobras, with 66% interest,
volumes in excess of 2.1 billion barrels of oil. To face this
and the other partners are Galp, with 14%, and Barra
major challenge, the company is reinforcing its technical staff
Energia, with 10%. The block has made three discoveries,
by hiring new professionals.
Bem-te-vi, Biguá and Carcará, and six other promising and
independent prospects have been identified, in addition to
In 2011, following its strategic planning, QGEP reinforced the
a potential extension of the West Abaré discovery, in the
commitment to continuously generate value. The company
adjacent block, BM-S-9.
obtained success when it reached profits and positive
operational cash flow, even under the limited production
Later, the company acquired a share in the BS-4 Block,
conditions of the Manati Field, in addition to expanding its
located to the North of the Santos basin. This important
portfolio of assets and diversifying the potential sources
acquisition was concluded in the beginning of 2012. QGEP
of future revenue. For 2012, the company is confident
is the block´s operator, with 30% interest, and its partners
and expects another year of success, with the return of
are Petrobras, with 40%, and Barra Energia, with 30%. The
the natural gas production to the recurrent levels and the
block´s area includes the Atlanta and the Oliva fields, which
advancement of the E&P activities.
total, according to the development plans approved by ANP,
Gas Treatment Station in the Manati Field – Camamu Basin (BA).
57
Investments in renewable energies, wind power and
biomass and entry into the cement production sector were
highlights in the New Business area.
Queiroz Galvão Desenvolvimento de Negócios (Queiroz
Galvão Business Development - QGDN) is organized as
follows: New Business and Business in Operation.
New Business
The mission in this area is to attract and develop new
business, by prospecting developments in select areas of
interest and supporting other areas or companies of Queiroz
Galvão Group.
Focused on infrastructure, the area developed two important
business segments that became part of the Group in 2011:
Cement
In partnership with an important national economic group,
the company started, in São Luís (MA), the construction of
a milling unit for the production of cement, with production
capacity of 500,000 tons per year. This investment is part of
a plan that aims to reach the production of 8.5 million tons of
cement per year to supply the main consumer markets
in Brazil.
Renewable Energies
The creation of Queiroz Galvão Energias Renováveis (Queiroz
Galvão Renewable Energies - QGER) represents the entry
of the Group in the wind and biomass energy production
segment. This new company was born among the country’s
largest in its sector, with a significant potential for growth
and a sustainability vision.
Processed renewable biomass, Pindaré-Mirim (MA).
60 Queiroz Galvão Group – 2011 Annual Report
Wind Power Energy
QGER has a portfolio of projects with sales contracts in the
regulated and free markets that total 810 MW capacity to
be installed.
Biomass Energy
Pilot project in operation for the production of energy, with 5
MW of installed capacity, using biomass from the waste of
planted forests or short-cycle cultivars.
Business Plan
Cosima – Biomass Thermoelectric Power Plant (UTE). Maranhão.
QGER’s business plan foresees the operation of more than
1.100 MW produced from renewable sources by 2017.
Queiroz Galvão Energias Renováveis
+1
.1
G
Evolution of Installed Capacity (MW)
W
rs
yea
5
in
1,131
664
346
135
135
2012
2013
205
2014
2015
2016
2017
Wind farms.
61
Businesses in Operation
Food
Agro-industry
The strategy adopted by the company in 2011 marked the
transformation of its agricultural activity into agro-industry. As
a result of this change, the current focus of Queiroz Galvão
Alimentos (Queiroz Galvão Foods -QGA) was expanded,
Queiroz Galvão Alimentos has an irrigated cultivation area of
1,000 hectares for the production of grapes, mangoes
and coconuts.
Cattle raising
Developed in the Arataú farm, in Pará, the raising of the
Nelore breed cattle presents state-of-the-art technology,
such as transfer of embryos and in vitro fertilization for the
genetic improvement of the herd.
adding fruit pulp concentrate to table fruit.
The increase in consumption of natural, preservative-free
fruit juices follows a global trend of healthier eating habits.
The company’s verticalization process aims to supply the
NATURAL HERITAGE
The Natural Heritage Private Reserve (RPPN)
of Esperança, located in the municipality of
national demand, the North American and European markets
Carnaubais (RN), created by Queiroz Galvão
and three emerging markets: India, China and Russia.
Alimentos (QGA), received a certificate of
recognition from the Chico Mendes Institute
QGA‘s production of high quality fruit remains at full force,
also operating in the domestic market. The distribution
for the Conservation of Biodiversity. This is
due to the relevance of the reserve for the
conservation of the remaining forests of the
logistics, the continuing supply and the traceability of the
Caatinga biome, with a rich variety of wildlife
process with certification of chain are characteristics that
and flora, typical of the regions, to benefit
guide the entire operation.
current and future generations.
Production of fruit pulp concentrate...
62 Queiroz Galvão Group – 2011 Annual Report
...such as mango, Petrolina (PE).
Shrimp Farming
Steel
QGA’s shrimp farming activity directed its focus to the
By combining its high productivity and competitiveness to
domestic market. The strong demand of Brazilian consumers
strict environmental and social management, Queiroz Galvão
drove the activity to full operation. The Potiporã farm, with
Siderurgia (Steel) – with an installed capacity of 860,000
960 hectares of cultivation, in Rio Grande do Norte, is an
tons/year of pig iron – is still focused on a sustainable
integrated project that comprises laboratories for post-larvae
operation. Concerned with the environmental preservation,
production, grow-out unit and processing unit.
the well-being and livelihood of the population in the vicinity
of its plants in Maranhão – Simasa, Pindaré and Cosima –,
the company currently has 42,000 hectares of reforestation.
All charcoal used in the production of pig iron comes
SUSTAINABILITY
For the third consecutive year, the company
Vale granted the Sustainability Bonus to
from company-owned forests, planted with eucalyptus.
The workforce hired in this activity comes from Energia
Verde (Green Energy), a Queiroz Galvão Siderurgia affiliate
company that strictly complies with the current labor
Queiroz Galvão Siderurgia (Steel), the first
legislation and does not use outsourcing. Energia Verde
Brazilian company to receive this recognition.
invests in technology for the carbonization process, which
It represents an important incentive to
ensures better return in the conversion of wood into charcoal
sustainable production processes – in this
and, consequently, a significant reduction of CO2 emission.
case, the use of charcoal from company-
This initiative was recognized and certified by the UN,
owned forests planted for the production of
enabling the company to generate and market
pig iron in Maranhão.
carbon credits.
CO2 REDUCTION
Project Mecanismo de Desenvolvimento
Limpo (Clean Development Mechanism
- MDL) – monitoring of carbonization and
improvement in the conversion of wood into
charcoal – from Queiroz Galvão Siderurgia,
certified the reduction of 84,000 tons of
CO2 equivalents, in 2011. The expectation is
a total reduction of 2.2 million tons of CO2
equivalents by 2021.
Eucalyptus forest (MA).
63
Responsible Projects
Queiroz Galvão Group invests in the development of the
communities in the vicinities of its projects and of society
as a whole.
Cleaning of the Fundão Canal, Rio de Janeiro (RJ).
SOCIAL INTEGRATION
The companies work in favor of the training of workers and
Recovery of the Pedra Bonita Road
of all family members residing in areas near its projects,
In partnership with the Rio Barra Concessionaire, the State
supporting professional training programs and stimulating
Department of Transportation, the Tijuca National Park (Parna-
sports and culture:
Tijuca), the Chico Mendes Institute for the Conservation of
Biodiversity (ICMBio) and the Environmental State Institute
Children´s Health
(Inea), the Rio Barra Construction Consortium (CCRB)
The Renascer Child Health Association develops work with
executed the recovery of the Pedra Bonita Road, route to
families of children hospitalized at the Lagoa Hospital in
one of the main tourist spots in Rio de Janeiro: the hang
Rio de Janeiro. The objective is to avoid that after being
glider launch ramp in São Conrado. The Pedra Bonita Road,
discharged, patients return to the poor conditions of
which is approximately 600 meters long, gained new paving,
treatment, nutrition and hygiene that cause successive
reconstruction of the curb, renewal and creation of new
relapses. Partner of the association, CQG participates in
water draining ducts, installation of signage along the entire
projects for renovation and construction of houses for these
route and demarcation of parking spots. A new guardhouse
families. Quality of life, health, professionalization, housing,
was also built in the entrance of the Pedra Bonita trail. The
education and citizenship are the five vectors upon which the
existing guardhouse, near the Canoas Road was renewed
institution operates.
and the place gained an access gate. Selective waste bins
were also installed along the way.
The Children's Health Project promotes the renovation of houses for families in situations of social risk.
66 Queiroz Galvão Group – 2011 Annual Report
Football school
CCRB also participated in the social project to create a
football school – a sports, culture and leisure training center
for youths from Vila da Pedra Bonita, Vila Canoas and Rocinha
– donating a pair of galvanized goal posts. This project
enables youths to practice sports, promoting discipline and
self-esteem.
Professional Training
EAS gave total support to the training of workers to
meet the demands of the major investments that turn
Pernambuco – and more specifically the Suape Complex
– into the largest emerging center for the recovery of the
shipbuilding industry in the country. Following this guideline,
the shipyard donated next generation equipment to the
laboratory of the shipbuilding technical course at the Federal
Institute of Education, Science and Technology of the state
(IFPE), Ipojuca campus. In all, there were approximately
30 machines, among which a computerized steel cutting
machine, an automatic four-roll calender (machine for the
production of curved metal panels), a tube bender, a press
brake for steel profiles and a heating blowtorch. Also with the
support of EAS, Pernambuco Federal University, in a pioneer
initiative in the northeast of Brazil, created the graduate
course on Naval Architecture.
Workshop on Carpentry and IT
By using dynamic methods associated with day-to-day
activities, this workshop, a partnership between CRT and
the Pestalozzi Association of Magé, in the state of Rio de
Janeiro, works with the training of students in carpentry and
computer skills along with the institution´s
pedagogical content.
Support to the fishing activity in Salvador (BA).
67
SOCIAL INTEGRATION
Projects Som da Serra and Meu
Primeiro Instrumento
of practical and theoretical classes about the best use of
The objective of the Som da Serra project is to develop
branches in food preparation; hygiene and conservation; and
artistic- educational activities, giving popular music a priority
prevention of non-communicable diseases such as diabetes,
role in education. The partnership between CRT and the
hypertension and heart disease.
food, such as the use of vegetable peels, stems, seeds and
Grêmio Musical Guapiense also develops the project Meu
Primeiro Instrumento (My First Instrument) which aims to
Play Viagem à Terra (Journey to Earth)
professionally train 80 adolescents and youths from the
A part of the CRT Portas Abertas (Open Doors) event, the
municipality of Guapimirim and neighboring areas. The
play Journey to Earth, sponsored by the Rouanet Law,
12-month course expands their references about art, ethics
has the objective of showing children the importance of
and aesthetics, stimulating knowledge and reflection on
respecting the environment and the planet where they live.
several artistic demonstrations.
The show leads the children to an understanding of what
there is on the planet: the diversity of animals and natural
Olhares (Glances)
resources, the different ways of life, its problems and the
CRT´s project seeks to develop initiatives to recover local
solutions. The project, taken to public schools of Rio de
history and give basic notions of photography techniques
Janeiro, strengthens the cultural development of children
to adolescents from the Tia Anastácia Home, in Teresópolis
deprived of such access mechanisms. In 2011, it was also
(RJ). In addition, it provides knowledge about the lives
performed at Sesi in Duque de Caxias (RJ).
of women in the community, improving self-esteem and
stimulating community actions. The result of the project
Viva Vôlei
is the development of community bulletins and a public
Through a project made possible by the Sports Incentive
photography exhibition.
Law (Law 11,438/06), QGEP supported the implementation
of the Viva Vôlei project in the municipalities of Canavieiras
Sewing Workshop
and Ilhéus, allowing children and adolescents from these
Aimed at teaching women how to sew, this CRT workshop,
communities to live in a teaching-learning process through
developed at the Ciep Procópio Ferreira, in Duque de Caxias
the practice of volleyball. In one year of project, 295 children
(RJ), provides basic and introductory elements for the
from public schools of the two municipalities started to
marketing of products and services in associations. It also
practice the sport. In addition to socialization and stimulus to
recovers autonomy as an alternative for the generation of
motor skills, social assistants deal with local family issues.
jobs and income, and women´s self-esteem.
The goal is to continue this program in 2012.
Cozinha Brasil (Brazil Kitchen)
Program Sol
A partnership between CRT and Sesi, the Cozinha Brasil
Quip, in partnership with the Public Attorney's Office of
program, carried out at the Pestalozzi Association of Magé, is
the state of Rio Grande do Sul (MPE/RS), supports the Sol
one of the initiatives carried out by the Firjan System to help
educational program, which is intended for children and
the population adopt healthy eating habits. It is an education
youths, presenting measures to prevent the use of narcotics.
course on nutrition that lasts 8 to 10 hours, and is comprised
68 Queiroz Galvão Group – 2011 Annual Report
Tarifa Social (Social Tariff)
Relocation of the Quilombola community
The project, implemented by all Águas do Brasil
PCH Mucuri relocated the Quilombola community Marques,
concessionaires, is aimed at serving families with low social-
preserving the occupation of traditional territory and
economic profile and, in some municipalities, education
promoting sustainability in the community through the
institutions. The partnership with the Board of Education and
implementation of agriculture and livestock programs,
the Municipal Foundation of Education in Niterói with the
technical training, community center, and the production of a
Águas de Niterói concessionaire also involves 35 day care
documentary about the history of the Marques community.
centers that take care of the community children aged 0 to 6
years old, with reduction of monthly costs for
water consumption.
Associação Beneficente de Amparo e
Solidariedade (Abas)
This association maintains the Elza G. Branco day care center
Cordas da Grota Project– Multiplying
in São Paulo, which is dedicated to care for children aged
This project is supported by the Águas do Brasil Group,
six months up to four years of age, providing education,
a partnership between Águas de Niterói and the NGO
food, and basic health services. The day care center offers
Reciclarte, whose main proposal is the social-cultural
workshops on music, movement, mathematics, oral
intervention through music, expanding the cultural and
language, nature and society, among others.
educational reference for children, adolescents and youths
from the community to create opportunities and income. The
project works with students aged 7 to 18 from public schools.
Viva Vôlei Project, Canavieiras/Ilhéus (BA).
69
ENVIRONMENTAL INITIATIVES
Based on the monitoring and fast solution to occasional
most sensitive to hydrocarbon spills, and make an analysis
incidents, the environmental management of Queiroz Galvão
about the influence of climate changes upon the region based
Group promotes initiatives for the preservation of natural
on scenarios from the Intergovernmental Panel on Climate
resources and awareness on environmental best practices:
Change (IPCC).
Letter of Socio-Environmental Sensitivity
Noise and vibrations program
QGEP decided to allocate resources from the production
Implemented by the Rio Barra Construction Consortium
of Manati Field to projects that bring social-environmental
(CCRB), the program aims to keep the levels of noise and
benefits to the region of the Jequitinhonha basin, where
vibration caused by the operation within the legal thresholds
the BM-J-2 Block is located. The investment went to a
for inhabited areas, avoiding nuisance to the neighboring
pioneer project in Brazil, developed by the Environmental
communities. CCRB monitors, in several points, the level of
Modeling Center (Numa), which is linked to the Laboratory
sound pressure and vibration generated by its activities.
of Engineering Computational Methods (Lamce) by COPPE/
UFRJ, and by the Environmental Studies Center (NEA) of
Air quality monitoring station
the Geosciences Institute (Igeo) of Bahia Federal University
CCRB implemented in its work fronts an Air Quality
(Ufba). The field of study comprises the coastal region of Una,
Monitoring Station to monitor the quality of the air before and
Canavieiras and Belmonte, which contains environments
during the work conducted in the region, ensuring that they
such as mangroves, estuaries, restingas and beaches. The
comply with the established parameters. Other stations are
purpose of the studies is to prepare a Letter of Social and
being implemented according to the opening of new
Environmental Sensitivity that will show the areas that are
work fronts.
Recovery of impacted areas – mangrove in the south of Bahia.
70 Queiroz Galvão Group – 2011 Annual Report
Biodiversity monitoring and
conservation Program
To keep the integrity of the local wildlife and flora in the
areas of intervention of the CCRB service fronts, a study
is conducted to describe and analyze biodiversity in nearby
areas, registering the occurrence and behavioral aspects
of the wildlife, with emphasis on endemic species. The
consortium seeks to cooperate for the conservation of
flora in the region, in addition to proposing the planting, in
appropriate locations, of species found in the areas
of intervention.
Water treatment system
CCRB's water treatment station reuses all the water
employed in the excavation of tunnels and that would be
discharged. After the treatment, the water returns to the
equipment for reuse. In the station the water is analyzed by
environmental technicians to make sure that it meets certain
parameters before it is returned to the equipment. It should
be noted that 100% of the water used in the excavations of
the Barra/São Conrado tunnel is reused.
Water and oil separating boxes
The separating boxes for water and oil were implemented in
the construction sites of Line 4 of the Rio de Janeiro subway
to separate water and oil in the activities using equipment
such as excavators and jumbos. Effluents resulting from
activities with this equipment are sent to the separating box,
where the oil is collected and sent to refining companies.
There, it is transformed into other products such as grease
and returns to the market. The water separated is sent to the
treatment station and subsequently returns to the processes.
Support to the economic activity in the community, Canasvieiras (BA).
71
ENVIRONMENTAL INITIATIVES
Fishway program
Viva Água Project
Companhia Energética Santa Clara (Cesc) develops, between
The Águas do Brasil concessionaires visit communities with
the months of November and February, the fishway program
the Equipped Mobile Units. The objective is to bring the
in the Mucuri River, to help the fish overcome the dam to
company closer to its clients, provide information about its
spawn, a phenomenon known as piracema.
projects and initiatives, collect requests and suggestions,
solve problems that are relevant to that region or to its
Conservation and management of the
terrestrial wildlife
clients, and raise awareness within the community on the
importance of environmental sustainability.
The hydroelectric power plant of Jauru develops the program
for the conservation and management of terrestrial wildlife
Águas Limpas (Clean Waters) Project
in order to make a consolidated evaluation of the project’s
Aiming to collect waste in the Guanabara Bay, Rio de Janeiro
repercussions in the habitat of this wildlife. The interactions
(RJ), Águas de Niterói created the project Águas Limpas in
between the populations and the environmental changes are
association with NGO Instituto Rumo Náutico (Project Grael)
analyzed, checking the inclusion of new species in
and the Nitéroi Cleaning Company (Clin), and the support of
each campaign.
the Public Attorney's Office of Rio de Janeiro. The cleaning,
study, and monitoring of the floating waste in the region are
Mangue Vivo (Living Mangrove)
carried out through the operation of an automated vessel.
CRT and Fundação OndAzul (FOA) sponsor the Mangue
Vivo project, aiming to promote environmental recovery of
ReciclArte Project
mangroves in the municipality of Magé, in Rio de Janeiro,
Starting with the selective collection project, carried out
and stimulate environmental awareness through joint efforts
in partnership with public institutions and NGOs from the
for planting native species, and lectures about the project.
municipalities, Águas do Brasil developed a project to make
toys out of recycled material, through which employees
Água na Escola (Water in Schools) Program
donate PET bottles and other materials.
Conducted in the municipality of Niterói, in partnership with
NGO Água e Cidade, the project aims to train educators
Cooking oil collection
by delivering educational material, teacher’s manual and
In partnership with NGOs and municipal administrations,
magazines to public and private schools. The objective is to
the Águas das Agulhas Negras concessionaire establishes
train teachers to become multipliers of the environmental
cooking oil collection points in schools, restaurants,
cause and to take a cross-disciplinary approach to
industries, and hospitals, and transports this product for
the subject of water in explanatory classes, lectures,
storage, from where the product is collected and sent for
demonstrations, etc.
the production of biofuel. In addition, they disseminate
information about the importance of such collection, of the
construction of oil boxes, and the rational use of detergents.
72 Queiroz Galvão Group – 2011 Annual Report
Transforming sludge into fertilizer
Jacaré Project
The Águas das Agulhas Negras concessionaire initiated
The main objective of this project by the Águas do Brasil
the process to remove all sludge in the Sewage Treatment
Group is to interconnect all properties in the Jacaré
Station Alegria (ETE Alegria), totaling an average of five
community, in the district of Itaipu, in Niterói, to the sewage
tons per day. Rich in organic matter, the waste is treated or
network. Through the monitoring of the Jacaré River, a large
processed in a way that allows for its recycling in a rational
number of illegal connections were observed, discharging
and environmentally-safe manner.
sewage directly into the river. In order to raise awareness
and to help the community make the sewage connections,
Reforestation Programs
the concessionaire hires local workforce and donates the
Since 2002, reforestation programs have been carried out
material needed for these connections with the necessary
in watershed areas in Petrópolis (RJ) by the Águas do Brasil
technical supervision.
Group concessionaires. More than 20,000 seedlings have
already been planted and stored in greenhouses near the
replanting location, in the districts of Ponte de Ferro, Maria
Comprida and Taquaril. The population supports the planting
of native species and other species resistant to fire.
The Fauna Viva project helps preserve native animals, in Serra dos Órgãos (RJ).
73
CULTURAL PROGRAMS
In the regions where it operates, Queiroz Galvão Group
by Vital Engenharia Ambiental. The book documents the
sponsors several projects involving books, documentaries,
delicate flower species from the central region of Minas
theatrical shows and exhibitions:
Gerais, captured from Nilson´s tours to the state. There
are 207 photos of native species, with files containing
Tragic flooding in Nova Friburgo
information about the family, scientific name, popular name
Águas do Brasil Group produced the book and documentary
and comments about their striking features. For the author,
Tragédia e reconstrução – O desafio das águas (In loose
the book is an instrument to raise environmental awareness.
translation: Tragedy and reconstruction – The challenge of the
Some units were donated to approximately 300 schools in
waters), reporting the plight of the victims, the struggle of the
the Iron Polygon region.
workers, and the attempt of the city of Nova Friburgo (RJ) to
recover after the 2011 floods. The book, written by journalist
A propósito de senhorita Júlia
Aline Erthal, has 64 pages with photos of the tragedy, some
The play A propósito de senhorita Júlia (In loose translation:
of them shocking, and testimonials about the difficult mission
About Ms Júlia), sponsored by Queiroz Galvão Group, is a
of saving lives, recovering bodies, crossing over chaos,
new interpretation of the text written by Swedish author
recovering water supply: in short, surviving.
August Strindberg. The Brazilian version aims to honor the
author in the100th anniversary of his death in 2012 and who
Plant species from the Quadrilátero
Ferrífero (Iron Polygon)
is considered one of the fathers of modern theater. The story
The book Flores dos campos rupestres do Quadrilátero
focusing on women´s behavior at the end of the 19th century.
Ferrífero (In loose translation: Rupestrian wildflowers of
This new version, starred by actress Alessandra Negrini,
the Iron Polygon), written by Nilson Batista, was sponsored
opened in Rio de Janeiro.
depicts the conflict between gender and social classes,
Play A propósito de senhorita Júlia, with Alessandra Negrini, Rio de Janeiro (RJ).
74 Queiroz Galvão Group – 2011 Annual Report
Portinari for all
QGPE is the only sponsor of the Portinari Project through
several initiatives. The company supports the Portinari para
Todos (Portinari for All) project, which in its first phase, in
2011, took environmental education to the communities in
the vicinities of its activities in the municipalities of Una,
Belmonte, Ilhéus and Canavieiras, on the southern coast of
Bahia. The program comprises the traveling exhibition Art and
the Environment, with 22 reproductions of Portinari works,
as well as the free distribution of 210 small trunks with
educational material, and the training of teachers of public
schools, in partnership with the Municipal Departments of
Culture of each location. The Portinari para Todos Project
aims to contribute to improving the educational and cultural
background of children, young people, and adults to build
Book sponsored by Vital Engenharia.
ethical and aesthetic values and allow for the dissemination
of Brazilian art through the works of Candido Portinari. The
second phase of the project is scheduled for 2012 and is
going to concentrate its activities in the southeastern region
of the country.
War and Peace Project
QGEP sponsored a special edition of the book War and
Peace, about the history of the War and Peace panels,
which were a present from the Brazilian government to the
UN headquarters in New York, in 1956. After three years of
effort and coordination involving the federal government,
international organizations, state and private companies, UN
delivered custody of the panels to the Portinari Project as of
2013. The masterpiece returned to Brazil to be restored and
its traveling exhibition in Brazil and abroad will start in 2012.
Book War and Peace.
75
CREDITS AND CONTACT INFORMATION
General Coordination
QUEIROZ GALVÃO S.A.
Queiroz Galvão Group
Institutional Communication
Rio de janeiro
Rua Santa Luzia, 651, 7º e 8º andares
Text and Editing
Centro Rio de Janeiro RJ Brazil 20030 041
Report Comunicação
Phone / Fax +55 (21) 2131 7100
Graphic Design
São Paulo
The Way Up Design
Av. Presidente Juscelino Kubitschek, 360, 17º andar
Itaim Bibi São Paulo SP Brazil 04543 000
Review
Phone / Fax +55 (11) 3131 1100
Assertiva Produções Editoriais
Photography
The addresses of other Queiroz Galvão Group offices in
Ari Versiani
Brazil and abroad are available on the website
Queiroz Galvão Photo Collection
www.queirozgalvao.com
Preprinting and Printing
Burti
The financial statements of the areas of operation are
available on the website www.queirozgalvao.com
Print Run
2,000 copies in Portuguese
1,500 copies in English
1,500 copies in Spanish
2011 AR Contact Information
Institutional Communication Department
[email protected]
76 Queiroz Galvão Group – 2011 Annual Report
This report was printed on paper produced with wood from
reforestation certified with the FSC ® seal (Conselho de
Manejo Florestal - Forest Stewardship Council ®) and from
other controlled sources. The certification follows international
environmental and social control standards.